FTSE 100 Rises: Glencore Shares Jump, Sainsbury Declines

The FTSE 100 rose 0.4% on Friday, supported by strong gains in mining stocks, while broader European markets also advanced. The DAX edged up 0.1%, the CAC 40 gained 0.5% and the Stoxx 600 climbed 0.4%.

Glencore led the blue-chip index higher, surging 8.5% after the commodities group and Rio Tinto confirmed they are in early discussions over a possible all-share merger.

Rio has until 5 February to decide whether to make a formal offer or withdraw. A combination of the two giants would create what would be the world’s largest mining group.

Antofagasta also rose 3%, while Auto Trader advanced 2.4%.

Sainsbury was the biggest faller, dropping 5.9% after new figures showed that strong grocery performance over Christmas had been offset by weaker non-food and Argos sales. The update weighed on sentiment toward the stock, even as the broader retail sector traded mixed.

Other notable decliners included Endeavour Mining, down 3.7%, and Rio Tinto, which slipped 2.6% despite its involvement in the merger talks.

Marks & Spencer gained 2% after Berenberg upgraded the stock to Buy and raised its price target to 415p, following the retailer’s trading update on Thursday.