European shares rose on Monday, with Glencore and ArcelorMittal pushing up mining stocks and French economic data lifting the Paris stock market.
The pan-European FTSEurofirst 300 index rose 2.2 percent. The euro zone’s blue-chip Euro STOXX 50 index advanced 2.5 percent.
Lisbon’s benchmark PSI-20 index rose 1.9 percent after Portugal’s centre-right government on Sunday won an election, albeit without a majority.
France’s CAC gained 2.7 percent after data showed that French services activity accelerated in September more than previously thought.
German potash producer K+S slumped 20 percent, however, after Potash Corp withdrew its bid for K+S.
Carmaker Volkswagen fell around 5 percent to four-year lows. Credit default spreads on VW jumped, another effect of the car maker’s admission it cheated on diesel emissions tests in the United States.
Glencore extended its rebound from a sell-off a week ago, rising around 10 percent on Monday after a surge in its Hong Kong-listed shares. The company said it knew of no reason for the swings.
Some traders said Glencore‘s shares were buoyed by talk the company might sell some of its agricultural assets to cut its debt.
“Sentiment is improving towards Glencore on the signs that it may be able to sell some of its assets,” said Thames Capital Markets’ trader Nav Banwait.
Gains by steelmaker ArcelorMittal also helped mining stocks. ArcelorMittal rose 5 percent after Citigroup raised its rating on the stock to “buy” from “sell”.
European stock markets remain below the peaks for 2015 reached around April. Concern China’s economy was slowing pulled them lower in the last quarter.
Germany’s DAX, which rose 2 percent on Monday, remains some 20 percent below a record high reached in April. Overall sentiment remains “neutral”, said Peregrine & Black senior sales trader Markus Huber.
Today’s European research round-up
Reuters
