The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar, Switzerland. Glencore’s Hong Kong share price soared by as much as 72% in Hong Kong trade yesterday. It finished at HK$12.60, up 17.76% from Friday’s closing level. The Swiss miner’s London share price soared to the top of the British stock market, jumping 21.05% to 115 pence.
European stock markets pushed strongly yesterday as weak US data fuelled talk the US Federal Reserve would not hike interest rates any time soon.
London’s benchmark FTSE 100 index of top companies climbed 2.76% to 6,298.92 points, while Paris’ CAC 40 index jumped 3.54% to 4,616.90 points and Frankfurt’s DAX 30 won 2.74% to 9,814.79.
Madrid shot up 3.83% and Milan added 2.73%.
“European stocks jumped at the start of the week, encouraged by a positive reaction in US markets to the weak US employment report that spawned the biggest daily reversal for the Dow Jones Industrial Average in four years,” said analyst Jasper Lawler at CMC Markets.
The Dow Jones Industrial Average was up 1.12% to 16,656.29 points in midday trading.
The broad-based S&P 500 rose 1.17% to 1,974.15, while the tech-rich Nasdaq Composite Index gained 0.79% to 4,745.06.
Asian indices also took their lead from Friday’s Wall Street surge after a September unemployment report increased the likelihood the US Federal Reserve will keep key interest rates near zero for longer than previously thought.
That boosted stock market sentiment as rising interest rates tend to send markets lower because they increase loan repayments for businesses, while slashing disposable incomes for consumers.
A delay would give global stock markets some breathing space after suffering their worst quarter since 2011.
“Markets had been anticipating that the Federal Reserve would raise rates in December, but Friday’s very weak employment numbers may have thwarted any chance of a 2015 rate rise,” said Rebecca O’Keeffe, head of investment at online stockbroker Interactive Investor.
US job growth faltered in September and the job market weakened across the board, the Labor Department said.
The US economy added a disappointing 142,000 jobs in September, well below analyst estimates of 205,000.
In foreign exchange trading, the European single currency slid to $1.1199, from $1.1219 Friday night in New York.
Asian and European markets were also buoyed by reports that Swiss mining company Glencore was mulling the sale of its agriculture business.
Glencore’s Hong Kong share price soared by as much as 72% in Hong Kong trade. It finished at HK$12.60, up 17.76% from Friday’s closing level.
The Swiss miner’s London share price soared to the top of the British stock market, jumping 21.05% to 115 pence.
“Glencore is once again taking the top spot on the FTSE,” said analyst Brenda Kelly at traders London Capital Group.
“Shares in Hong Kong rose as much as 72% as discussions are believed to be under way in regards to the offloading of its agricultural business.
“Management is also apparently open to takeover offers, but rumours of this kind are the norm in the aftermath of a fairly ruthless sell-off.”
Glencore stock had fluctuated wildly last week amid investor fears that sinking commodity prices would affect its ability to meet outstanding debt obligations.
The firm plunged in trading last week after brokerage Investec questioned its future if commodity prices—which are wallowing at multi-year lows owing to weak demand from a slowing China—fail to recover soon.
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