Glencore is surging as markets open
Glencore is leaping at the open on Thursday, erasing the losses for the week.
The stock is up more than 5%, trading at around 96. That's a stunning comeback for the stock, which was less than 70 at the start of the week.
Here's what that looks like:
While the shares might be rebounding, the company's debt is still performing terribly. Traders are pricing Glencore bonds like junk, according to a report in the Financial Times. Bonds maturing next year are yielding 13%. The company has more than $36 billion in outstanding debt.
After a terrible quarter, the worst since 2011, markets are greeting the last three months of the year in positive territory.
Here's what Jim Reid at Deutsche Bank has to say:
Experience tells you that if there is going to be a scare then August and September seem to be the months these scares get amplified. By mid October markets often enjoy a better run into YE and into the start of the new year. While it seems crazy to base one's entire investment strategy on the calendar it's not usually wise to go against seasonals.
Here's the scoreboard as of 8:20 am UK time:
UK's FTSE: +1.20%
Germany's DAX: +0.87%
France's CAC40: +1.17%
Spain's IBEX: +1.01%
And this is what's happened to the Euro Stoxx 50, which is an index of Europe's biggest publicly listed companies.
It opened up more than 1%:
