Friday, September 27, 2013

Reuters: US Dollar Report: GRAPHIC-Euro zone stocks the top gainer in Q3, dollar flags

Reuters: US Dollar Report
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GRAPHIC-Euro zone stocks the top gainer in Q3, dollar flags
Sep 27th 2013, 12:43

LONDON, Sept 27 | Fri Sep 27, 2013 8:43am EDT

LONDON, Sept 27 (Reuters) - Euro zone stocks were the top investment in the third quarter, clocking up their best three-month gains since 2009 as investors bet on a cyclical upturn in the region.

The dollar struggled the most after a set of mixed economic data raised concerns that the U.S. economy may not be strong enough to allow the Federal Reserve to slow its bond buying programme.

Europe's STOXX index has risen 15.6 percent since July 1 on a dollar basis, nearly double the gains made by Tokyo and Shanghai shares.

The STOXX index has gained nearly 9 percent in euro terms, its biggest quarterly gain in four years.

Emerging stocks staged a strong recovery after a second-quarter sell-off triggered by the Fed's suggestion it would slow the pace of money printing.

The MSCI emerging equity index slightly outperformed developed counterparts with a gain of 7.1 percent.

German bunds and U.S. treasuries were in negative territory as investors shifted assets away from low-yielding government bonds into equities.

The dollar index fell 3 percent.

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