Europe Stocks Gain as Commodity Shares Jump; Glencore Rises 8.2%

European stocks rose, extending the rebound started on Friday into a second day.

A jump in commodity producers sent the Stoxx Europe 600 Index up 1.7 percent at 8:13 a.m. in London. Glencore Plc, which tumbled a record 29 percent last Monday amid weak commodity prices, surged 8.2 percent after soaring as much as 72 percent in Hong Kong trading. ArcelorMittal climbed 6.2 percent after Citigroup Inc. recommended buying the stock.

The Stoxx 600 ended up 0.5 percent on Friday, erasing losses of as much as 0.9 percent, as a weak employment report in the U.S. fueled speculation that the Federal Reserve will delay its interest-rate increase. Traders are now betting it will happen in March.

Optimism is returning to European equities after the Stoxx 600 lost 16 percent from its April record through the end of last week. It reached its lowest level since January on Sept. 29 as concern grew that a slowdown in China will hurt the global recovery, while plunges in Volkswagen AG and Glencore further deteriorated sentiment. An exchange-traded fund tracking European stocks had a record $ 462 million in outflows last week, and trading of bearish options jumped.

Source : Bloomberg

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