ECONOMIC DOWNTURN IN CHINA UNSETTLES MARKETS. China’s un-expectedly weak economic output kept the international capital markets in suspense during the third quarter of 2015, and weighed on global indices. The still-unresolved Greek debt crisis and the Volkswagen emissions scandal, which broke in September, further darkened sentiment. There was continued uncertainty among investors in the face of contradictory signals regarding a possible prime rate rise by the U.S. Federal Reserve. This resulted in considerable falls in some stock prices and high volatility, especially on the European stock markets. By the end of the quarter, stock prices recovered slightly on the back of positive economic data from the eurozone.
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