Global markets on track for worst quarter since 2011

Jessica Morris
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Comparatively smaller events such as Hilary Clinton have also played a part (Source: Getty)

The commodity price rout, fresh concerns over the Chinese economy as well as its shock devaluation, and the prospect of the first interest rate rise from the US Fed since 2006 are some of the factors which made this summer a white knuckle ride for investors.

Given this, it's hardly surprising that global markets are heading for their worst quarter since 2011.

"Global equities are closing in on their worst quarter since 2011, with a number of factors fuelling fears in an already jittery market," strategists at Barclays wrote.

And apparently, some comparatively smaller events - such as the VW emissions scandal, Hilary Clinton, and Glencore - also played a part. One analyst said global markets have been in a heightened state of sensitivity, and it's rare to see so many major event-driven selloffs in quick succession.

Read more: There will be more "Glencores" ahead

"Last week the VW emissions scandal prompted a major selloff in European markets, carmakers and related companies worldwide," Angus Nicholson, market analyst at IG Group, said.

"Then Hilary Clinton, who had been planning to announce some new healthcare policies, jumped on the egregious price increase in a toxoplasmosis drug by new internet hate-target Martin Shkreli to decry the price of drugs in the US. This prompted a major selloff in healthcare and biotechnology stocks."

"Following this, Monday saw the release of an Investec report ... [which] noted all shareholder equity in the company could be eliminated in a worst-case 'spot price scenario'. This lead to Glencore’s FTSE-listing falling 29 per cent, sparking a major global selloff focused on the commodities sector."

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