European Stocks Surge: Glencore and Rio Tinto Stir the Market

European shares rose, led by an 8% surge in Glencore, boosting the STOXX 600 for a record weekly streak. Talks of a Glencore-Rio Tinto merger propelled movements, with energy and mining stocks advancing. Additionally, chip manufacturers like ASML saw positive results, while markets await a critical U.S. jobs report.

European shares opened strong on Friday, driven by a remarkable 8% rise in Glencore shares, setting the STOXX 600 on its course for an unprecedented winning streak since May. The upturn followed two days of market losses caused by weak earnings reports and geopolitical uncertainties.

In a significant development, Rio Tinto announced early discussions to acquire Glencore, potentially forming the world's largest mining company. Glencore's shares hit their peak since July 2024, while Rio Tinto's shares declined by 2.2%. As of 0809 GMT, the STOXX 600 index was up by 0.4%, with energy and mining stocks like Anglo American witnessing gains.

The tech sector also saw improvements, with ASML shares rising after TSMC reported better-than-expected earnings. Market participants remain attentive as they await a pivotal U.S. jobs report, anticipated to signal a slowdown in job growth reflecting corporate caution.

(With inputs from agencies.)