FTSE 100 Hits Record High Amid US Jobs Data and Mining Merger Buzz

The FTSE 100 reached a record high due to positive US jobs data and news of a potential Glencore-Rio Tinto merger. Glencore shares surged, contributing to the index's gains. The broader European market and energy stocks also saw significant boosts. Meanwhile, Sainsbury's and IAG faced setbacks.

The UK's FTSE 100 reached a record high on Friday, buoyed by a positive US jobs report that raised expectations for potential future interest cuts by the Federal Reserve. Glencore shares led the index after news broke about their potential merger with Rio Tinto to form the world's largest mining group.

Glencore's stock soared 9.6%, reaching its peak since July 2024. The merger talks with Rio Tinto, which would create a combined entity valued at nearly $207 billion, drove the stock surge, although Rio's shares fell 3% on the day. The FTSE 100 closed at an all-time high of 10,126.6 points, marking its second consecutive weekly gain.

The broader European market, represented by the STOXX 600 index, also hit a record high, helped by strong global risk appetite. The energy sector provided a significant lift to the FTSE 100, with a 2.8% gain amid rising crude oil prices. British midcaps, meanwhile, continued their upward trend, while Sainsbury's and IAG saw declines due to weaker sales and management changes, respectively.

(With inputs from agencies.)