Glencore Shares Surge Amid Potential Rio Tinto Merger

London stocks rebounded on Friday, following two consecutive sessions of losses, as Glencore shares (GLEN.L) jumped 10% after news of early merger talks with Rio Tinto (RIO.L). Glencore hit its highest level since July 2024, while Rio Tinto fell 2.2% amid the announcement.

Analysts note that a Glencore-Rio Tinto merger could potentially create the world’s largest mining company, sparking investor optimism in the UK mining sector.

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FTSE 100 and FTSE 250 Performance

The blue-chip FTSE 100 (.FTSE) climbed 0.4% by 10:44 GMT, positioning it for a second consecutive weekly gain. The domestically focused mid-cap FTSE 250 (.FTMC) rose 0.2%, holding near its four-year peak and on track for a fourth straight weekly gain.

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Energy Stocks Boost London Market

Rising oil prices for a second day helped energy stocks lift the market, with BP (BP.L) and Shell (SHEL.L) both up around 2.2%. The gains followed a 1% rise in oil prices, highlighting the sensitivity of energy companies to commodity trends.

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Other Key Movers

• Anglo American (AAL.L) rose 2.7%, after a European Commission filing indicated the miner’s deal with Canada’s Teck Resources (TECKb.TO) is moving toward antitrust clearance in Europe.
• Sainsbury’s (SBRY.L) reported higher underlying sales for the Christmas quarter, but shares fell 5.3% due to weakness in general merchandise offsetting seasonal gains.

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Investor Focus on Upcoming U.S. Jobs Data

Investors are also eyeing the U.S. nonfarm payrolls report, expected on Friday. Forecasts suggest a slowdown in job growth for December, reflecting business caution. Market participants anticipate that the report could influence global equity sentiment and add volatility to both U.S. and UK markets.

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Market Outlook

Overall, the London stock market showed resilience, with gains supported by:

• Optimism over merger activity in the mining sector
• Strong performance in energy stocks
• Positive seasonal trends in corporate earnings

However, investors remain cautious ahead of key economic data releases and potential geopolitical developments, which could introduce short-term volatility in London equities.