Europe stocks close at record as Glencore jumps on Rio Tinto interest

[BENGALURU] European shares ended on Friday (Jan 9) at a record high, powered by a surge in Glencore that helped put the Stoxx 600 on its longest weekly winning streak since May.

After two straight losing sessions, the rebound underscored investors’ resilience, even as a run of weak earnings and renewed geopolitical tensions, sparked by US actions in Venezuela, weighed on sentiment. Glencore jumped 10 per cent, while Rio Tinto fell 2.6 per cent. Rio said on Thursday that it was in early talks to buy Glencore, a deal that would create the world’s largest mining company.

The gains in Glencore helped the Stoxx 600 index climb 1 per cent.

TSMC results boost chips outlook

Technology stocks led the advance in the Stoxx 600 on the day and logged their best week in nearly two years.

Dutch chip equipment maker ASML added 6.8 per cent and was the biggest gainer in the tech index after HSBC raised its price target on the stock.

Germany’s Infineon rose 2.4 per cent, while STMicroelectronics added 2.9 per cent.

Tech shares also got a boost after upbeat fourth-quarter results from Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker.

Shares in Anglo American rose 2.7 per cent, a day after a filing from the European Commission showed that the miner’s deal with Canada’s Teck Resources is heading for antitrust clearance in Europe.

Defence stocks led weekly advances, with a near 10 per cent gain, their best showing since November 2020, after US President Donald Trump called for higher defence spending.

SEE ALSO

European stocks’ early-2026 rally hits speed bump as retail reality check drags

Global market sentiment also got a lift as investors took a fresh pulse check on the US labour market, an increasingly important gauge for the US Federal Reserve and for appetite towards riskier assets.

The latest non-farm payrolls report pointed to cooling job growth, but a dip in the unemployment rate reinforced expectations that the Fed will hold rates steady at its January meeting.

“The bulk of the US economy is trimming employment, which points to further work for the Federal Reserve. Nonetheless, the dip in unemployment and a likely ‘hot’ inflation print next week suggests no action before March,” James Knightley, chief international economist at ING, said.

The retail rout carried on from the previous session. Pandora warned of weaker 2025 sales growth, sending shares of the jewellery maker down 13 per cent.

Sainsbury’s reported a fall in general merchandise and clothing sales for the Christmas quarter, with the supermarket group’s shares falling 5.3 per cent.

On the trade front, European Union member states confirmed a broad majority of them support a planned free trade agreement with South American bloc Mercosur. REUTERS