9th Jan 2026 09:08
(Alliance News) - Stock prices in London opened higher on Friday, as the FTSE 100 was buoyed by news of merger talks between Glencore and Rio Tinto.
The FTSE 100 index opened up 33.17 points, 0.3%, at 10,077.86. The FTSE 250 was up 16.56 points, 0.1%, at 22,908.86, and the AIM All-Share was up 2.45 points, 0.3%, at 787.30.
The Cboe UK 100 was up 0.4% at 1,010.39, the Cboe UK 250 was slightly higher at 20,003.16, and the Cboe Small Companies was down 0.1% at 17,894.58.
In European equities on Friday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt was slightly higher.
Sterling was at USD1.3417 on Friday morning, down from USD1.3431 at the London equities close on Thursday. The euro was lower at USD1.1648 from USD1.1657. Against the yen, the dollar was higher at JPY157.61 versus JPY156.93.
Investors will be watching US jobs data, which is due at 1330 GMT.
Swissquote analyst Ipek Ozkardeskaya said: "The thinking goes as follows: a softer-than-expected print could revive Fed cut expectations, pull yields lower and support risk assets — with smaller and more cyclical parts of the market benefiting more than big, tech-heavy names.
"A stronger-than-expected report could push yields higher and weigh on equity valuations, in which case cash-rich tech companies may outperform. That said, a too-soft report could also be negative for sentiment."
Meanwhile, attention will also be on the US Supreme Court, as there could be a ruling as to the legality of US tariffs. The court never confirms which cases will be ruled on in advance.
"Principally, participants will concern themselves with two matters – firstly, whether or not tariffs implemented under that provision are struck down; and, secondly, if they are, whether the government must refund those levies which have already been collected," said Pepperstone analyst Michael Brown.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.6%, while the S&P 500 was marginally higher and the Nasdaq Composite finished down 0.4%.
The yield on the 10-year US Treasury widened slightly to 4.19% on Friday from 4.18% at the close on Thursday. The yield on the 30-year widened was unchanged at 4.85%.
In Asia on Friday, the Nikkei 225 in Tokyo was up 1.6%. In China, the Shanghai Composite was 0.9% higher, while the Hang Seng Index in Hong Kong gained 0.3%. The S&P/ASX 200 in Sydney was slightly lower.
In London, Glencore led the way on the FTSE 100 and jumped 8.5% after it said it is in preliminary discussions with Rio Tinto about a possible combination of some or all of their businesses, which if successful would create the world's largest mining firm.
The Baar, Switzerland-based mining firm was responding to media speculation and said talks could result in an all-share merger between itself and London-based peer Rio.
"The parties current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a court-sanctioned scheme of arrangement," Glencore said in a statement.
Shares in Rio Tinto were down 2.9%.
Glencore said there is no certainty that the terms of any transaction or offer will be agreed, nor as to the terms or structure of any such transaction or offer, if agreed.
Rio Tinto has until February 5 to announce a firm intention to make an offer for Glencore.
The discussions are the second round of talks in just over a year between the two companies, after Glencore approached Rio Tinto in late 2024 but a deal did not proceed.
Antofagasta shares climbed 2.6% after Goldman Sachs raised its rating on the stock to 'buy' from 'neutral'.
The bank increased its price target for the miner to 4,000 pence from 2,480p.
J Sainsbury shares fell the most on the FTSE 100 and were down 5.4%.
The retailer reported mixed third-quarter sales, with food outperforming expectations, while the performance of clothing and general merchandise and of non-food division Argos fell short of consensus forecasts.
Sainsbury's said total retail sales excluding fuel rose 3.3% in the six weeks to January 3, which includes the key Christmas trading period, and climbed 3.9% in the third quarter in total, the 16 weeks to January 3.
Like-for-like sales excluding fuel in the third quarter rose 3.4%, short of company-compiled consensus of 3.6%.
Grocery sales in the Christmas period jumped 5.1%, but General Merchandise & Clothing sales fell 1.0% and Argos sales declined 2.2%.
For the third quarter, Grocery sales rose 5.4%, beating 4.9% consensus, General Merchandise & Clothing sales fell 1.1%, disappointing hopes for a 1.7% rise, while Argos sales dropped 1.0% versus consensus which forecast 0.4% growth.
Chief Executive Simon Roberts noted Sainsbury's has won grocery market share for the sixth consecutive Christmas period, "delivering our winning combination of value, quality, service and availability for customers".
Despite "softer demand and milder weather", Tu clothing achieved a "strong performance within a weak market" and delivered an "exceptional" performance in Christmas categories, including record sales of Christmas pyjamas, Sainsbury's said.
But Argos faced "significant headwinds from online traffic trends, a tough and promotional general merchandise market and weak consumer confidence," the company said.
At Argos, Sainsbury's said volume growth in the third quarter was more than offset by the impact of lower average selling price across the market.
Sainsbury's backed its financial 2026 retail underlying operating profit guidance of over GBP1 billion, and said it still expects to return more than GBP800 million in cash to shareholders this financial year. This includes ordinary dividends, a GBP250 million special dividend and a GBP250 million share buyback.
In addition, the retailer lifted its Retail cash flow view for the financial year to more than GBP550 million, from previous guidance of more than GBP500 million.
On the FTSE 250 index, shares in Herald Investment Trust climbed 7.3% after it proposed a tender offer allowing shareholders to sell up to 100% of their shares.
The London-based investment trust said if 25% owner Saba Capital Management block the tender offer it will propose a backstop tender offer, which will require a lower shareholder approval threshold and could be implemented without Saba's support.
"The purpose of the backstop tender offer is to ensure that shareholders have the opportunity to exit close to net asset value, at a time before Saba might gain control of the board or the management of the company," Herald said.
The tender offer will be conditional upon shareholder approval at a general meeting. For the tender offer to proceed, at least 75% of votes cast at the meeting will need to be in favour.
The tender offer will also be conditional on Saba electing to tender all of their shareholdings in the company.
"Saba has currently indicated that they will not support the tender offer. However, the board believes all shareholders should have the opportunity to express their support for the tender offer, which the board sees as the best solution for the company and shareholders as a whole, and the board will endeavour to persuade Saba to support the tender offer before it closes," the firm said.
It expects to hold the general meeting in early February.
On the AIM index, Pulsar Helium shares climbed 9.8%.
The White Rock, Canada-based resource company said its Jetstream 5 appraisal well at the flagship Topaz project in Minnesota, US encountered an additional pressurised gas influx at around 2,857 feet depth.
Gold was up at USD4,469.20 an ounce early on Friday from USD4,457.01 late Thursday. Brent oil was trading higher at USD62.42 a barrel from USD61.12.
Still to come on Friday's economic calendar is US jobs data, including nonfarm payrolls and unemployment figures, Canada unemployment numbers and a eurozone retail sales report.
By Michael Hennessey, Alliance News reporter
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Related Shares:
GlencoreRio TintoSainsbury'sHerald Investment TrustPulsar Helium