Glencore leads European share rebound, but China hits Asia
By Chuck Mikolajczak
NEW YORK (Reuters) - European stocks rose on Monday, lifted by mining and commodities giant Glencore after it pledged to slash its debt by a third, and countering a fall in Asian markets led by weakness in China following a four-day break there.
Trading was lighter than usual with U.S. markets closed for the Labor Day holiday, while investors across all asset classes continued to digest the implications of last week's U.S. jobs data for the timing of the first U.S. interest rate hike since 2006.
The FTSEuroFirst index of leading 300 shares closed up 0.48 percent at 1,399.34 .FTEU3 and Britain's mining-heavy FTSE 100 index finished up 0.52 percent at 6,074.52 .FTSE.
Both indexes had been up well over 1 percent earlier . Glencore (GLEN.L: Quote) shares rose as much as 12 percent after it said it will suspend dividends, sell assets and raise $2.5 billion in a new share issue as it aims to cut its debt to $20 billion by the end of next year.
"The news was well-received by the market," said David Papier at ETX Capital in London.
Glencore closed up 7 percent at 131.8 pence.
The rally in Europe was broad-based, marking a rebound from Friday's steep losses of almost 3 percent after investors marginally upped their bets that the Federal Reserve could raise U.S. interest rates later this month.
Germany's DAX was up 0.7 percent .GDAXI at 10,108.61 points and France's CAC 40 was up 0.59 percent at 4,549.64 points .FCHI, both halving their opening gains. Continued...