ROME: European stock markets kicked off the week sharply higher on Monday, with a jump in commodity prices and for resource companies helping to bolster the region’s bourses.
The Stoxx Europe 600 index SXXP, +2.41% was up 2.1% to 355.06, setting it on track for the highest close in two weeks.
The gain built on a 0.5% advance from Friday, when a disappointing U.S. jobs report triggered speculation the Federal Reserve won’t lift interest rates until 2016.
The changed rates expectations have helped drive a rally in oil and mining prices, as lower interest rates are seen as supportive for emerging-market economies and usually weigh on the dollar. On Monday, the greenback was lower against most other major currencies, with the ICE dollar index DXY, -0.19% down 0.2% at 95.601.
Meanwhile, crude oil futures CLX5, +0.90% rallied 1%, and metals rose almost across the board. Oil majors posted some of the biggest gains in Europe on the back of this: Shares of Total SA FP, +4.19% TOT, +4.54% rose 3.7%, BP PLC BP., +3.54% BP, +5.04% added 2.9%, and Royal Dutch Shell PLC RDSB, +3.70% RDS.B, +3.55% climbed 2.7%.
Among miners, embattled Glencore PLC GLEN, +9.31% GLCNF, +10.14% 0805, +17.76% gained as much as 20% after reports the commodities giant is in talks to sell off assets to tackle its debt pile. In Asian trade, the stock rose more than 70% at one point.
However, the commodities company said “it is not aware of any reasons for these price and volume movements,” in a statement given at the request of the Stock Exchange in Hong Kong.
Other mining companies also posted solid gains, with shares of Rio Tinto PLC RIO, +2.61% RIO, +3.02% RIO, +2.22% up 2.6% and Anglo American PLC AAL, +2.37% 2.8% higher.
Other movers: Shares of ArcelorMittal SA MT, +7.90% MT, +6.97% put on 6.5% after Citigroup lifted the steelmaker to buy from sell, according to Dow Jones Newswires.
