London’s FTSE 100 index closed at a record high on Friday, boosted by positive investor sentiment following U.S. employment data and a sharp rally in Glencore shares amid potential merger talks. The milestone reflects a growing optimism in global markets, with energy stocks and mining companies leading the charge.
FTSE 100 Reaches All-Time Closing High
The FTSE 100 (.FTSE) gained 0.8%, closing at 10,126.6 points, its highest-ever level. This marks the second consecutive weekly gain for the UK’s flagship index. Meanwhile, the FTSE 250 (.FTMC) rose 0.6%, hovering near its highest in over three years and recording its fourth straight weekly increase.
The pan-European STOXX 600 index (.STOXX) also climbed close to 1%, setting a new all-time high, signaling strong investor confidence across European markets.
Glencore Leads the Rally
Shares of mining giant Glencore (GLEN.L) soared 9.6%, reaching their highest levels since July 2024. The surge came after news that Glencore is in discussions with Rio Tinto (RIO.L / RIO.AX) about a potential merger, which would create the world’s largest mining group, valued at nearly $207 billion.
- Rio Tinto shares, however, closed down 3% following the announcement.
- Analysts view the merger talks as a significant driver of market optimism, reflecting investor confidence in the mining sector and commodity-driven growth.
The potential consolidation in the mining sector has also sparked speculation about increased operational efficiencies and enhanced global market share, positioning the merged entity as a dominant player in metals and energy commodities.
U.S. Jobs Data Supports Market Optimism
Global markets also benefited from the release of U.S. nonfarm payrolls, which showed slower-than-expected employment growth in December 2025.
- Slower job growth suggests the Federal Reserve may ease interest rates in 2026, keeping borrowing costs relatively low and supporting equity markets.
- Traders are currently pricing in approximately 54 basis points of monetary easing for the year, reinforcing investor confidence.
This data helped boost global risk appetite, contributing to the record closes in both the FTSE 100 and pan-European indices.
Energy Stocks Provide Major Support
Energy stocks gained 2.8%, among the biggest contributors to the FTSE 100’s record close, following a rise in crude oil prices. The sector continues to benefit from global demand growth and supply constraints, highlighting the resilience of energy companies in volatile markets.
Other Notable Market Movements
- Sainsbury’s (SBRY.L) fell 5.3% after reporting a decline in general merchandise and clothing sales for the Christmas quarter.
- IAG (ICAG.L) dropped 2.7% following the announcement that Jose Antonio Barrionuevo, finance chief of British Airways, will become the group’s new CFO starting in June.
Despite these declines, strong performances in mining, energy, and broader blue-chip sectors outweighed individual stock losses, driving overall market gains.
Outlook for the UK Stock Market
With the FTSE 100 at record highs, analysts expect continued volatility balanced by opportunities in mining and energy sectors. Factors likely to influence the market in the near term include:
- Developments in Glencore-Rio Tinto merger talks.
- Global economic indicators, including U.S. employment and interest rate policies.
- Crude oil prices and energy sector performance.
- Seasonal retail trends and corporate earnings reports.
Overall, investors remain cautiously optimistic, with blue-chip companies and commodity-driven stocks providing stability in an otherwise dynamic market environment.
Key Takeaways
- FTSE 100 closed at 10,126.6 points, a record high, up 0.8% on the day.
- Glencore shares surged 9.6% amid potential merger with Rio Tinto.
- U.S. nonfarm payrolls growth slower than expected, supporting future Fed rate cuts.
- Energy stocks and mining companies provided major boosts to market performance.
- FTSE 250 and STOXX 600 also reached multi-year and all-time highs, respectively.
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