European stocks recover from losses

(MENAFN- AFP) Europe's main stock markets advanced Monday, rebounding from sharp pre-weekend losses in low volume trade with Wall Street closed for a public holiday.

London's benchmark FTSE 100 index of top companies rose 0.51 percent to stand at 6,073.50 points nearing midday.

Frankfurt's DAX 30 added 0.53 percent to 10,090 points and the Paris CAC 40 climbed 0.36 percent to 4,539.20.

The Madrid IBEX 35 climbed 0.22 percent to 9,843.20 points.

London's mining sector powered higher on Monday after resources titan Glencore unveiled debt-slashing plans.

Glencore's share price surged 5.68 percent to 130.15 pence.

Swiss mining giant Glencore, hit by collapsing commodities prices, announced drastic moves to cut its $30 billion (27-billion-euro) debt by a third.

"A new package of reform measures aimed at cutting debts helped make Glencore a top riser ... on the FTSE," noted CMC Markets analyst Jasper Lawler.

"The measures including asset sales, a dividend cut and rights issues are all aimed at addressing the firm's over-leveraged balance sheet that leaves it exposed during the current bear market for commodities."

Glencore, which has lost more than 50 percent of its market value this year, said it planned to raise $2.5 billion (2.2 billion euros) in share sales and suspended dividend payments until further notice.

"Glencore is topping the table with those proactive moves by management being very well received, but the stock has been incredibly volatile in recent days and there's a fair bit of strategy that needs to be digested here," noted TrustNet analyst Tony Cross.

Mining peer Antofagasta soared 6.82 percent to 603 pence, boosted by a recovery in copper prices and optimism over China.

Steel giant Thyssenkrupp meanwhile gained 1.23 percent to 18.47 euros in Frankfurt, while Arcelor Mittal rose 0.69 percent to 6.55 euros in Paris.

Back in London, Tesco shares gained just 0.22 percent to 186.35 pence, after it offloaded its South Korean unit.

Tesco said in a statement that it has agreed to sell Homeplus to a consortium led by private equity firm MBK Partners for more than £4.0 billion (5.5 billion euros, $6 billion).

The troubled supermarket giant said in a statement that proceeds will be used to cut debt and help turn around its ailing UK business.

In foreign exchange deals in London on Monday, the euro rose to $1.1162 from $1.1152 late in New York on Friday.

On the London Bullion Market, gold advanced to $1,120.97 per ounce from $1,118.25.

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