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FTSE jumps 2.5% as rally gathers pace

FTSE jumps 2.5% as rally gathers pace

European equity markets moved sharply higher on Monday (October 5) as cyclical stocks rallied, fuelled by speculation surrounding recent laggard Glencore.

The FTSE 100 was up 2.5% at 6,285 in early afternoon trading, the highest level reached since the sharp falls seen on ‘Black Monday’ on August 24, with every stock in the index moving higher.

Leading the way was Glencore, which rose 15 per cent to 109.2p following tentative reports that the company was open to a bid in the aftermath of a 65 per cent fall in its share price this year.

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Glencore had earlier said in a statement it did not know the reason for the 40 per cent jump in its Hong Kong share price overnight.

Rising commodity prices also boosted the firm and other miners, while financials also rallied in an environment of greater appetite for riskier ventures.

Index gains were stronger still in Europe, where the FTSE Eurofirst 300 and the Xetra Dax both jumped 3 per cent.