A modest start to October for the world's stock markets and a rally in hard-hit commodities suggest risk appetite may be resurfacing after a quarter marked by fear and risk aversion.
After suffering their worst quarter in four years amid fears about a China slowdown, U.S. rate uncertainty and emerging market risks, equities have crept up at the start of the fourth quarter.
The S&P 500, a broad gauge of U.S. shares, is up more than 2 percent from a low hit on Monday, while Asian shares closed Friday with a weekly gain of just over 1 percent and stock markets in London, Frankfurt and Paris all traded over 1 percent higher Friday.
Read MoreWhat the charts are saying for Q4
"Monday felt like the end of the world was coming with commodity prices (falling); then we had a couple of good days and yesterday was a bit all over the place," Stephen Cohen, chief investment strategist at Blackrock, told CNBC's "Squawk Box Europe" on Friday.
"Overall we are still cautious, but we are seeing one or two signs that would point towards a rally going into year-end," he said.