European equities reached record highs on Friday, driven by an 8.3% increase in Glencore shares that positioned the STOXX 600 index for its longest consecutive weekly gains since May 2025. The recovery, following two days of declines, indicates investor resilience despite weaker earnings reports and renewed geopolitical concerns stemming from recent US actions in Venezuela.
Glencore shares rose to their highest level since July 2024, while Rio Tinto declined by 2.6%. On Thursday, Rio Tinto announced preliminary discussions regarding a possible acquisition of Glencore, a transaction that would establish the world’s largest mining company. Glencore’s strong performance contributed to a 0.4% rise in the STOXX 600 index by 0938 GMT.
Nevertheless, Michael Field, chief equity strategist at Morningstar, advised caution: “There is precedent for deal negotiations in this sector extending over several months before collapsing. The anticipated benefits of these mergers are often overstated and become evident only after detailed due diligence.”
TSMC RESULTS BOOST CHIPS OUTLOOK
The technology, mining, and energy sectors led advances within the STOXX 600, increasing by 1.8%, 1.7%, and 1.6%, respectively. ASML, the Dutch semiconductor equipment manufacturer, gained 3.9%—the largest rise within the technology index—following an upward price target revision from HSBC. Germany’s Infineon grew by 1.3%, and STMicroelectronics added 1%. Technology stocks were also supported by positive fourth-quarter results from TSMC, the world’s leading contract chipmaker.
Anglo American shares increased by 2.4% after a European Commission filing indicated that its agreement with Canada’s Teck Resources is progressing toward antitrust clearance in Europe.
Market participants now await the US jobs report, which is projected to reveal slower employment growth in December as businesses proceed cautiously. In addition, the US Supreme Court is expected to issue a decision concerning the legality of President Donald Trump’s international tariffs.
“The forthcoming ruling may be impactful, though it is likely that the US administration will pursue alternative legal measures should the tariffs be declared unlawful,” commented Morningstar’s Field.
