Roller-coaster quarter ends with shares, oil under pressure

World stocks fell for the first time in four days on Thursday as a roller-coaster quarter drew to a close after hammering the dollar and the pound but boosting gold and bonds. European markets opened with shares FTEU3 down 1 percent, the dollar hovering near a seven-week low versus the euro EUR= and oil LCOc1 almost back where it started after a wild V-shaped ride. Analysts were cautious to draw too many conclusions, but there was a sense the underlying currents of the past few months were still running strong.

Oil slipped to $39 a barrel on record U.S. stockpiles, China was put on a down- grade warning by S&P and new data showed euro zone inflation remains nonexistent despite the European Central Bank's redoubling its stimulus efforts.

That's a large part of reason German government bonds are set for their best quarter since the height of the euro zone crisis in late 2011.

Bund yields were down another couple of ticks in early trading on Thursday. They have shed nearly 50 basis points since the start of the year, within touching distance of zero again. This quarter "has all been about the three C's. Commodities, China and central banks," said Aberdeen Asset Management investment committee member Kevin Daly. The currency market saw a resumptions of this week's latest sell-off in the dollar, after cautious comments on Tuesday from the head of the Federal Reserve about the global outlook.

The dollar index .DXY dropped for a fourth day as the euro inched up to $1.1325 EUR=, putting the index on track for its biggest monthly decline since April 2015 and largest quarterly drop in five years. "Obviously, Tuesday was very interesting from Janet Yellen and it had the desired effect." said Charles Schwab managing director Kully Samra.

The greenback's recent weakness has also been a boon to the Australian and New Zealand dollars, both of which soared to nine-month highs.