FACTBOX-Ten facts about world markets in Q2 of 2009

LONDON, June 30 (Reuters) - Here are 10 facts about global markets in the second quarter of 2009, which ends on Tuesday:

-- World stocks as measured by the MSCI All-Country World Index .MIWD00000PUS are on track for their best quarter since the benchmark was first compiled in 1988.

-- The world index was up 22.4 percent for the quarter. Its nearest "competitor" was the fourth quarter of 1998 when it rose 20.66 percent. -- Much of the index's gain this quarter came in the first two months. The index was essentially flat in June as investors began trading in a tight range.

-- Emerging markets were the main driver. MSCI's sub-index for the sector .MSCIEF was up 34.5 percent for the quarter, also a record high. Asian shares have been among the stars, with the MSCI Asia-Pacific ex-Japan index .MIASJ0000PUS rising 33.7 percent. This is around twice the gain on the U.S. Standard & Poor's 500 index .SPX.

-- A big decliner was volatility. The Chicago Board Options Exchange Volatility Index .VIX, often called Wall Street's fear gauge, fell below 30 percent at the end of the quarter to its lowest level since before the collapse of Lehman Brothers.

-- Over the quarter so far the VIX has lost 42.6 percent, reflecting growing confidence among investors that equities have ended the tumble of the past year or so. -- One of the biggest percentage gainers was oil. New York crude CLc1 has gained around 44 percent on expected demand from a recovering world economy. Other commodities also made strong gains, with copper MCU3 up nearly 27 percent.

-- Hopes for a global recovery and rising concerns about future inflation -- linked to the oil price surge and super-easy credit policy -- pushed government bond yields and mortgage rates higher. Ten-year U.S. Treasury yields jumped 82 basis points over the quarter to 3.55 percent, having topped 4 percent at one point in early June. Ten-year euro zone government yields ended the quarter 40 basis points higher at 3.4 percent.

-- A growing appetite for higher-yields boosted demand for emerging market debt. Emerging sovereign debt spreads narrowed 189 basis over U.S Treasuries according to JPMorgan 11EMJ.

-- Investors ended the quarter clearly committed to future gains in higher-yielding assets. Reuters asset allocation polls for June showed cash reserves at a 23-month low, a sign that money was being put to work. EPFR data shows that about $130 billion has exited safe-haven money market funds in the year to date, but that is still less than a third of the $455 billion of cash that flocked to those funds in 2008 as a whole.

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