European stocks recover from losses

Europe’s main stock markets advanced Monday, rebounding from sharp pre-weekend losses in low volume trade with Wall Street closed for a public holiday, the AFP reported.

London’s benchmark FTSE 100 index of top companies rose 0.51 per cent to stand at 6,073.50 points nearing midday.

Frankfurt’s DAX 30 added 0.53 per cent to 10,090 points and the Paris CAC 40 climbed 0.36 per cent to 4,539.20.

The Madrid IBEX 35 climbed 0.22 per cent to 9,843.20 points.

London’s mining sector powered higher on Monday after resources titan Glencore unveiled debt-slashing plans.

Glencore’s share price surged 5.68 per cent to 130.15 pence.

Swiss mining giant Glencore, hit by collapsing commodities prices, announced drastic moves to cut its $30bn debt by a third.

“A new package of reform measures aimed at cutting debts helped make Glencore a top riser … on the FTSE,” noted CMC Markets analyst Jasper Lawler.

“The measures including asset sales, a dividend cut and rights issues are all aimed at addressing the firm’s over-leveraged balance sheet that leaves it exposed during the current bear market for commodities.”

Glencore, which has lost more than 50 per cent of its market value this year, said it planned to raise $2.5bn in share sales and suspended dividend payments until further notice.

“Glencore is topping the table with those proactive moves by management being very well received, but the stock has been incredibly volatile in recent days and there’s a fair bit of strategy that needs to be digested here,” noted TrustNet analyst Tony Cross.

Mining peer Antofagasta soared 6.82 per cent to 603 pence, boosted by a recovery in copper prices and optimism over China.

Steel giant Thyssenkrupp meanwhile gained 1.23 per cent to 18.47 euros in Frankfurt, while Arcelor Mittal rose 0.69 per cent to €6.55 in Paris.

Source : Punch

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