(MENAFN- The Peninsula)
LONDON: European stock markets rebounded strongly Monday after hefty gains elsewhere as weak US data fuelled talk the US Federal Reserve would not hike interest rates any time soon.
London's FTSE 100 index jumped 2.24 percent to 6267.09 points mid-afternoon in the British capital while in the eurozone Frankfurt's DAX 30 won 2.85 percent to 9825.48 points and the Paris CAC 40 rallied 3.73 percent to 4625.99 compared with Friday's close.
In foreign exchange trading the European single currency rose to $1.1208 just off $1.1219 Friday night in New York.
Wall Street opened strongly on the up side with the Dow Jones Industrial Average climbing 0.73 percent to 16592.30 after five minutes of trading.
The broad-based S&P 500 rose 0.84 percent to 1967.81 while the tech-rich Nasdaq Composite Index gained 0.78 percent to 4744.50.
Asian indices followed 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 -- sentiment underpinning Monday's rises.
A rate hike 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 142000 jobs in September well below analyst estimates of 205000.
The prospect of rising interest rates tends to send markets lower because they increase loan repayments for businesses while slashing disposable incomes for consumers.
"Share prices across the world have bounced strongly from Friday's lows on the prospect that the Fed's intended rate hike may now be postponed until 2016" added O'Keeffe.
Glencore lifts sentiment
Asian and European markets were also buoyed on Monday 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 percent in Hong Kong trade. It finished at HK$12.60 up 17.76 percent from Friday's closing level.
The Swiss miner's London share price soared to the top of the British stock market adding 14.11 percent to 108.40 pence in afternoon trade.
"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 percent as discussions are believed to be underway 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.
In Asia on Monday Hong Kong stocks added 1.60 percent Sydney won 1.95 percent and Tokyo leapt 1.58 percent while Shanghai was shut for a holiday.
AFP