ROME: European stock markets have slid over uncertainty about global growth adding to heavy losses at the start of the week, while mining giant Glencore’s shares rebounded on assurances of solvency.
In London, the benchmark FTSE 100 index closed down 0.8 per cent on Tuesday at 5,909.24 points.
In the eurozone, Frankfurt’s DAX 30 finished with a loss of 0.4 per cent at 9,450.40 points and the Paris CAC 40 dipped 0.3 per cent to 4,343.73 compared with Monday’s close.
“The greater macro uncertainty led by, but not exclusive to, China has really spooked investors,” James Buckley, a portfolio manager at Baring Asset Management in London, told Bloomberg News.
“The Fed doesn’t feel able to raise rates yet and there are concerns over whether Europe will be able to continue its very gradual recovery.”
In foreign exchange, the euro edged down to $US1.1237 from $US1.1242 late on Monday in New York, as markets awaited Friday’s key US jobs data for indications on whether the Federal Reserve will kick-start a program of interest rate increases before the end of the year.
European stocks indices had sunk on Monday as more disappointing Chinese economic data and downbeat analyst comment weighed on the mining sector, with London-listed mining giant Glencore closing down almost 30 per cent.
But shares in the group rebounded Tuesday by as much as 20 per cent before finishing in London up 16.95 per cent, after Glencore assured it remained solvent.
“Our business remains operationally and financially robust — we have positive cash flow, good liquidity and absolutely no solvency issues,” the Swiss company said in a statement.
