European markets closed Friday at a new record, driven mainly by a sharp rise in Glencore shares.
Glencore surge and Rio Tinto talks
Glencore stock jumped about 10% after news that Rio Tinto is in early talks to buy the miner. A deal between the two would create the world’s biggest mining company. The rally helped the STOXX 600 index rise 1%.
Tech sector leads the rally
Technology shares were the day’s biggest winners, posting the best weekly gain in almost two years.
- ASML (+6.8%) – Dutch chip‑equipment maker rose after HSBC lifted its price target.
- Infineon (+2.4%) – German semiconductor firm gained on strong demand.
- STMicroelectronics (+2.9%) – The European chipmaker also saw a boost.
- TSMC – The world’s largest contract chipmaker posted solid fourth‑quarter results, supporting the sector.
Defence stocks jump
Defence shares climbed almost 10% this week, their strongest performance since November 2020, after U.S. President Donald Trump called for higher defence spending.
US payroll data eases market worries
The latest U.S. non‑farm payroll report showed slower job growth, but the unemployment rate fell slightly. Analysts expect the Federal Reserve to keep interest rates unchanged at its January meeting, with any changes likely pushed to March.
Retail stocks under pressure
- Pandora – Shares dropped 13% after the jewellery maker warned of weaker sales growth for 2025.
- Sainsbury’s – The supermarket’s stock fell 5.3% following a decline in general merchandise and clothing sales during the Christmas quarter.
EU backs Mercosur free‑trade talks
Most European Union member states have voiced support for a planned free‑trade agreement with the South American bloc Mercosur, signalling broader trade cooperation.
What it means for you
For retail investors, the market’s record high shows resilience despite mixed earnings and geopolitical concerns. Keep an eye on mining news, especially the Glencore‑Rio Tinto talks, and watch tech and defence sectors for continued momentum.
Remember, this is my perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.