Global equities ended their worst quarter since the 2011 euro zone crisis on an upbeat note with a rally on Wednesday on hopes that Wall Street had bottomed and the commodities rout was over, while the dollar also rose.

Major equity indexes around the world declined 10 per cent or more from July through September as fears mounted of a global slowdown brought on by China. Slower Chinese growth also slammed commodity prices and countries that depend on their export.

European stocks turned in their worst quarter since the depths of the euro zone debt crisis, when regional indices such as the blue-chip Euro STOXX 50 index slid 23.5 per cent in the third quarter of 2011. The index rose 2.3 per cent on Wednesday, but closed the quarter down 9.5 per cent.

Analysts questioned the strength of the equity market's rally, which was helped by a Chinese tax cut on small cars aimed at reviving sales in the world's biggest auto market.

Peugot rose 6.4 per cent and Fiat Chrysler rose 4.8 per cent in Europe.

A sense of panic ebbed and more investors viewed the market as oversold, but many remained uncertain, said Brian Fenske, head of sales at ITG in New York.

"I don't think there was a real catalyst," Fenske said of the day's surge. "We're getting a real snapback."

Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey, also cited the notion that the sell-off was over.

"You're starting to see some of the first real buying at what's really pretty dramatically reduced prices in some sectors," Meckler said.

"Whether it can hold, that's been the problem," he said.

Major European indices rose more than 2 per cent, and stocks on Wall Street jumped almost the same on a late-day surge. The FTSEuroFirst 300 index in Europe closed up 2.6 per cent, while MSCI's all-country world index rose 2.1 per cent. For the quarter, the closely watched MSIC index fell 9.9 per cent and the European index fell 9.2 per cent.

Quarterly losses for US stock indexes were less than for those in Europe or Asia.

For the day, the Dow Jones industrial average closed up 235.57 points, or 1.47 per cent, to 16,284.7. The S&P 500 rose 35.94 points, or 1.91 per cent, to 1,920.03 and the Nasdaq Composite gained 102.84 points, or 2.28 per cent, to 4,620.17.

The Nasdaq biotech index, which had skidded 13.5 per cent over the past five days, rose 4.5 per cent on Wednesday. It posted a 19.8 loss for the quarter.

Shares in mining and trading firm Glencore, which plummeted on Monday along with commodity prices, jumped 14.1 per cent after it sought to reassure investors over its debt. Its shares had risen 17 per cent on Tuesday.

The dollar got a lift from American private-sector jobs data, which bolstered bets on a US interest rate hike by year's end. The euro fell on a report euro zone inflation had turned negative.

US private employers added 200,000 jobs in September, according to the ADP National Employment Report, beating forecasts and suggesting the Federal Reserve might be able to raise interest rates later this year.

The dollar index, a basket of major trading partner currencies, rose 0.43 per cent for the day and was on track for a 0.8 per cent gain for the three months ending Wednesday.

The euro fell against the dollar by 0.6 per cent to $1.1176 .

Euro zone prices fell by 0.1 per cent on an annual basis in September after rising 0.1 per cent last month, feeding speculation the European Central Bank will expand or extend its bond buying as the Fed prepares to raise rates.

US government debt fell, but traders refrained from major bets ahead of Friday's US non-farm payrolls report for September, which may influence the Fed's interest rate decision.

The benchmark 10-year US Treasury note rebounded 2/32 in price to yield 2.0438 per cent.

The yield on German Bunds were steady at 0.59 per cent.

Oil prices were mixed in volatile trade, with global benchmark Brent up on worries about Russian airstrikes in Syria but US crude down after data showed a surge in domestic inventories.

Brent crude settled 14 cents higher at $48.37 a barrel, while US crude fell 14 cents to settle at $45.09 a barrel. Both indices slid 24 per cent over the third quarter.

The Thomson Reuters Jefferies CRB Index of 19 commodity prices pared gains to post a 0.10 per cent rise, as the decline in US crude weighed.

US gold futures for December delivery were down $12.50 an ounce at $1,114.30. – Reuters