The FTSE 100 (^FTSE), European and US stocks tipped higher on Friday, as investors assess the latest non-farm payrolls report from the US for clues about the potential Federal Reserve rate path, as well as potential consolidation in the mining sector.

The non-farm payrolls report, which returned to its normal cadence following disruptions from the government shutdown, showed the US added 50,000 jobs in December. Payroll growth fell short of economists’ expectations of about 70,000 positions added, sealing bets that the Fed will stand pat on interest rates in less than three weeks.

Meanwhile, London’s stocks shifted on news of a potential mining mega-merger as the market rounds out the first full trading week of the year.

The rumoured tie-up of mining majors, Rio Tinto (RIO.L) and Glencore (GLEN.L) lifted the FTSE.

Glencore, which is likely to be acquired in the event of a deal, saw its stock jump more than 7.5% shortly after the opening bell. It was trading more than 10% higher by the afternoon. Rio Tinto, meanwhile lost around 2.6%.

Commodity stocks followed suit: miners Anglo American (AAL.L) and Antofagasta (ANTO.L) gained on the news of the potential combination, alongside oil giants BP (BP.L) and Shell (SHEL.L).

While there scant details so far, the merger could lead to a new heavyweight in industrial metal extraction, including the likes of iron ore and transition metals such as copper, cobalt and lithium.

The companies held merger talks in late 2024 but negotiations broke down over disagreements, including valuation and the future of Glencore’s coal assets.

Supermarkets took a knock, meanwhile, following a Christmas update from Sainsbury’s (SBRY.L). The grocer said its core food business had performed well over the festive period but non-food brands such as Argos had taken a hit.

  • The FTSE 100 (^FTSE) rose 0.6% by the afternoon on Friday, pulled in different directions by commodities and supermarkets.

  • The DAX (^GDAXI) in Germany traded up 0.6% following trade balance and industrial production data that came in lower than expected.

  • The CAC 40 (^FCHI) in Paris bounded 1.1% into the green.

  • The pan-European STOXX 600 (^STOXX) rose around 0.7%.

  • Sterling traded almost 0.2% lower against the dollar (GBPUSD=X), trending towards the $1.34 mark. The S&P 500 (^GSPC) nudged up nearly 0.3%, while the Nasdaq Composite (^IXIC) was roughly 0.3% higher.

  • The Dow Jones Industrial Average (^DJI) rose 0.1% after a mixed session on Thursday as appetite for technology stocks ebbed. All three major indexes remain on pace to close the first full week of 2026 higher.