But it then tumbled back into negative territory, extending the week’s losses after suffering a 30% plunge on Monday. The company, run by billionaire Ivan Glasenberg, rose 11% to 88.88 pence, bringing the two-day gain to 30%.
Glencore has been at the eye of the storm over its exposure to a slowing Chinese economy and its $29.5 billion (£19.5 billion) debt pile, which the Swiss-based company has been forced by shareholders to slice with a series of self-help measures to raise $10 billion.
The call follows the most tumultuous day in Glencore’s five-year spell on public markets as the FTSE 100 company sank a staggering 29 per cent. The fall followed a note from Investec which said the shares could be worthless.
But while analysts and investors were trying to figure out how trading could save a company in crisis, several traders were leaving the firm after what industry sources said were trades that failed to reward the big risks taken and the large amounts of capital employed.
But even if that plan plays out as expected, Glencore will be left with a debt mountain of around $20 billion, which is above its market value – after Monday’s share price plunge, Glencore’s value stood at about $15 billion.