The pan-European Stoxx 600 index opened higher, led by mining stocks after reports of potential merger talks between Glencore and Rio Tinto. Meanwhile, the UK economy showed signs of recovery with GDP growth, but retail sales fell short of expectations.
The pan-European Stoxx 600 index saw a 0.3% increase shortly after the opening bell, with most sectors and all major bourses showing upward movement. Mining stocks were the standout performers, surging over 1% after reports emerged of merger talks between Glencore and Rio Tinto, which would have constituted the largest merger in the industry's history. While these talks are reportedly no longer active, the news initially sent a ripple of optimism through the market.
Meanwhile, the UK economy showed signs of recovery, with gross domestic product (GDP) rising by 0.1% on a monthly basis following two months of contraction. This positive development marked the end of the UK's economic downturn, but the growth fell short of the 0.2% increase predicted by economists polled by Reuters. Adding to the economic data released this week, the UK's December retail sales saw a decline of 0.3% compared to the previous month. Economists surveyed by Reuters had anticipated a 0.4% rise in sales volumes. This blend of economic data has fueled speculation that the Bank of England might resume interest rate cuts at its upcoming monetary policy meeting in February. Market traders are overwhelmingly anticipating a 25-basis-point reduction from the central bank at its next meeting, according to LSEG data.Across the continent, 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 experienced a modest upward trend, putting indexes on track to close the week higher despite recent volatility. Europe's mining sector spearheaded the gains during early morning trading, rising 1.2%, as investors closely followed reports of potential merger talks between Rio Tinto and Glencore. Both companies declined to comment on these reports when contacted by CNBC. The decline in the British currency followed official data revealing that UK retail sales had fallen by 0.3% in December compared to the previous month. This data, released Friday by the country's Office for National Statistics (ONS), also showed that on an annual basis, retail sales were up by 3.6%, following a 'large fall' in December 2023. These figures meant that sales volumes for the fourth quarter of the year were down 0.8% from the previous three-month period
European Markets UK Economy GDP Growth Retail Sales Mining Stocks Merger Talks Inflation
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.
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 »
European Markets Rise on MondayEuropean markets opened higher on Monday, despite a rocky start to 2025 for stocks globally. Investors are looking for clues on the direction of the global economy.
Read more »