- FTSE 100 closed at a record 10,126.6 points.
- Glencore jumped nearly 10 per cent on merger speculation.
- Energy stocks rose as oil prices edged higher.
The UK’s FTSE 100 closed at a record high on January 10, as investors reacted to a softer US jobs report and renewed talk of consolidation in the mining sector.
The blue-chip index ended the session at 10,126.6 points, up 0.8 per cent on the day and marking its second straight weekly gain.
Market sentiment appeared to improve after data showed US employment growth slowed more than expected in December.
Traders continued to price in around 54 basis points of interest rate cuts in 2026, according to figures compiled by LSEG, suggesting borrowing costs in the US could ease further down the line.
Miners take centre stage
Mining stocks were firmly in focus after reports emerged of potential merger talks between Glencore and Rio Tinto. Glencore shares surged 9.6 per cent, hitting their highest level since July 2024, as investors weighed the prospect of a combined mining group valued at nearly £163 billion ($207 billion).
Rio Tinto’s London-listed shares moved in the opposite direction, closing about 3 per cent lower by the end of the session. There has been no confirmation from either company, and the discussions remain speculative.
Beyond mining, energy stocks added momentum to the rally. The sector gained 2.8 per cent, tracking higher crude oil prices and providing one of the biggest boosts to the FTSE 100.
Europe joins the rally, some stocks lag
The upbeat mood was not limited to London. The pan-European STOXX 600 climbed almost 1 per cent to an all-time high, supported by a broader appetite for risk across global markets.
British mid-cap shares also rose 0.6 per cent, hovering near their highest level in more than three years and extending a four-week winning streak.
Not all stocks shared in the gains. Sainsbury's slid 5.3 per cent after the retailer reported weaker sales in general merchandise and clothing during the Christmas quarter.
Airline group IAG fell 2.7 per cent after announcing a change at the top of its finance team, with the finance chief of British Airways set to take over as group CFO in June.
For now, markets appear to be balancing optimism around potential rate cuts and corporate deals against company-specific concerns.
