BUZZ-European stocks: the squeeze is on

** Heavily shorted stocks jump across the board, spearheaded by miners, with Anglo American (LSE: AAL.L - news) +22.6%, Antofagasta (LSE: ANTO.L - news) +16.7% and Glencore (Xetra: A1JAGV - news) 15.2% higher

** Anglo American on track for 2nd biggest rise ever, best Nov 2008 (stock -65% in last 6 mths until Weds close); ANTO best day since Mar 2009

** Market heavily short mining stocks: Anglo short 18%, 16 days to cover; ANTO short 5.5%, 13 days to cover; GLEN short 8.3%, 16 days to cover according to traders

** Stoxx Basic Resources index +7.6%, best since May 2010, latest catalyst a drop in dollar which boosts commodity prices

** Other heavily shorted stocks spiking: oil services cos up 5-8 pct; Casino +6.5%, Sandvik (Amsterdam: 1081665.AS - news) +7.9%, Delta Lloyd +6.8%, Drax +6.3%

Top risers chart: http://reut.rs/1TGwNXn

(RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net RM:alasdair.pal.thomsonreuters.com@reuters.net)