European markets opened higher on Friday, led by gains in the mining sector and expectations of interest rate cuts in the UK. The Stoxx 600 index rose 0.3%, while mining stocks surged more than 1% after reports of potential merger talks between Glencore and Rio Tinto.
European markets opened higher on Friday, boosted by gains in the mining sector and hopes for interest rate cuts in the United Kingdom. The pan-European Stoxx 600 index rose 0.3% shortly after the opening bell, with most sectors and all major bourses showing upward movement. Mining stocks led the gains, exceeding 1% after reports surfaced that Glencore had been in discussions with Rio Tinto regarding a potential merger, the largest ever in the industry.
These talks, however, are no longer active according to recent reports. Meanwhile, the UK economy showed signs of recovery, with gross domestic product rising 0.1% on a monthly basis, ending two months of contraction. Despite this positive development, growth fell short of the 0.2% expected by economists polled by Reuters. December retail sales in the UK also declined 0.3% month-on-month, contrary to the anticipated 0.4% increase predicted by economists. This data has fueled speculation that the Bank of England might resume interest rate cuts at its next monetary policy meeting in February. Traders are overwhelmingly anticipating a 25-basis-point reduction from the central bank. Elsewhere in Europe, the European Commission is set to finalize figures on euro area inflation on Friday. Preliminary data released earlier this month indicated that annual inflation in the euro zone climbed to 2.4% in December, marking the bloc's third consecutive monthly increase. On Wall Street, stock futures climbed higher, positioning the indexes for a positive week's close despite recent volatility. European mining stocks were among the strongest performers during early morning trading, gaining 1.2% as investors closely followed reports of potential merger talks between Rio Tinto and Glencore. Both companies declined to comment on the news when contacted by CNBC. The decline in the British pound followed official data revealing a 0.3% drop in UK retail sales in December compared to the previous month, as reported by the country's Office for National Statistics (ONS). On an annual basis, retail sales increased 3.6%, according to the ONS, after a significant fall in December 2023. The latest figures indicate that sales volumes for the fourth quarter of the year were down 0.8% from the previous three-month period.
European Markets Mining Stocks Merger Talks Interest Rate Cuts UK Economy
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Renault shares rise 5% after reports of Nissan-Honda merger talks; European stocks mixedEuropean stocks were mixed Wednesday as investors awaited the latest monetary policy decision by the U.S. Federal Reserve.
Read more »
European Markets Rise in Shortened Christmas Eve SessionEuropean markets saw gains on Tuesday, December 26th, in a shortened trading session for Christmas Eve. The pan-European Stoxx 600 index rose by 0.3% with all sectors showing positive performance. Tech stocks were among the top performers, following a recent rally. Other notable events included the Danish pharmaceutical company's recovery after withdrawing its lung cancer treatment application and Anglo American facing a potential fine for environmental violations.
Read more »
European Markets Rise on Christmas Eve as Tech Stocks Lead GainsEuropean stocks closed higher on Tuesday, December 26, in a shortened trading session for Christmas Eve. The pan-European Stoxx 600 gained around 0.3%, with all sectors in positive territory. Tech stocks, notably AstraZeneca, were among the top performers, recovering from a recent setback. Other notable developments included Anglo American facing environmental scrutiny in Chile and Vistry revising its full-year profit guidance downward.
Read more »
European Markets Rise on Christmas EveEuropean markets closed in positive territory for a shortened trading session ahead of Christmas.
Read more »
European markets rise; Novo Nordisk shares up 2.5%European stocks were higher on Friday, as markets in the region reopened following a closure for the Christmas holiday.
Read more »
European Markets Rise Despite China Manufacturing MissEuropean markets show resilience despite a dip triggered by China's manufacturing data. Regional stocks are poised for moderate annual gains, led by Germany and the UK.
Read more »