London stocks were still higher by midday on Friday, with miners powering ahead after Glencore and Rio Tinto confirmed merger talks, and as investors eyed the release of the latest US non-farm payrolls report.
The FTSE 100 was up 0.4% at 10,088.87.

The payrolls report for December is due at 1330 GMT, along with the unemployment rate and average earnings.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said: "All eyes are on the US today as global markets await two key events in the US later today which could significantly impact volatility. We've got a key macro data point in the US jobs report - the first potentially clean read following the record-long government shutdown which impacted the validity of both jobs and inflation data for October and November.

"The jobs report is expected to show stability, which will in turn lead to stability in rates - with expectations that the Fed will hold when they meet later this month. Our house view is that both the Federal Reserve in the US and the Bank of England here in the UK will cut just twice apiece through 2026.

"The tariff ruling has more potential for upset - if the Supreme Court rules against Trump, then expect significant impact on both stocks and bonds, with mixed impact. Some may read it as an effective cut to inflation which would be good news for equities, but it also means a cut to government revenues - bad news for bonds."

On home shores, investors were mulling the latest data from the British Retail Consortium. It showed that that footfall across all shopping locations dropped in December, marking a disappointing end to the year for retailers, who are having to contend with weak consumer sentiment amid the rising cost of living.

In equity markets, Glencore surged to the top of the FTSE 100 after it and Rio Tinto confirmed they are in preliminary talks about a possible combination of some or all of their businesses, which could include an all-share merger - a deal that would create the world's largest mining company.

In 2014, Rio rejected a merger approach from Glencore, while talks between the two collapsed in 2024 after they failed to agree on valuation.

Rio was down just over 2% but heavily-weighted miners more generally were in the black, with Antofagasta and Anglo American both up.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Last year's theme of consolidation in the natural resources sector has shown no sign of let up in the early part of 2026. In the same week we've seen Chevron make a swoop for Lukoil's non-Russian fossil fuel assets, Rio Tinto and Glencore have confirmed that the mother of all mining deals could be back on the table.

"Details are thin on the ground, but a deal could see Rio scoop up some or all of Glencore's assets. A full combination would create a global leader in multiple industrial metals including iron ore and transition metals such as copper, cobalt and lithium.

"But M&A isn't an automatic path to extracting value for investors, with Rio's Australian shares down 6% and Glencore ending Thursday in negative territory.

"The diverse asset base and likely synergies have the potential to provide further protection against commodity price fluctuations, but just how Glencore's coal and trading arms fit in with Rio's business model, and push for improved sustainability credentials, are key questions to answer."

Marks & Spencer was boosted by an upgrade to 'buy' from 'hold' at Berenberg, while shipping services provider Clarksons shot higher on the back of an improved outlook for 2025 profit.

Sainsbury's was in focus after saying it remained on track to deliver annual retail profits of more than £1bn, following strong demand for food and drink in the run up to Christmas.

The supermarket saw grocery sales jump 5.1% in the six weeks to 3 January, and by 5.4% over the third quarter. However, shares in the blue chip came under pressure in morning trading after weak consumer confidence spending weighed on sales elsewhere in the group.

IAG flew lower after saying it had appointed Joe Antonio Barrionuevo, the finance chief of British Airways, as its new chief financial officer, succeeding Nicholas Cadbury.

Market Movers

FTSE 100 (UKX) 10,088.87 0.44%
FTSE 250 (MCX) 22,928.77 0.16%
techMARK (TASX) 5,863.60 0.21%

FTSE 100 - Risers

Glencore (GLEN) 453.50p 9.81%
Fresnillo (FRES) 3,560.00p 3.49%
Antofagasta (ANTO) 3,451.00p 3.45%
Flutter Entertainment (DI) (FLTR) 16,440.00p 3.04%
Anglo American (AAL) 3,218.00p 2.75%
Marks & Spencer Group (MKS) 353.90p 2.64%
Auto Trader Group (AUTO) 586.60p 2.59%
BP (BP.) 424.55p 2.14%
Shell (SHEL) 2,616.00p 2.11%
Diageo (DGE) 1,634.50p 2.03%

FTSE 100 - Fallers

Sainsbury (J) (SBRY) 312.80p -4.92%
Rio Tinto (RIO) 6,044.00p -2.42%
International Consolidated Airlines Group SA (CDI) (IAG) 427.00p -2.04%
Aviva (AV.) 680.40p -1.48%
Berkeley Group Holdings (The) (BKG) 3,972.00p -1.24%
Tesco (TSCO) 417.20p -1.16%
United Utilities Group (UU.) 1,224.00p -1.01%
St James's Place (STJ) 1,422.00p -0.97%
Phoenix Group Holdings (PHNX) 736.50p -0.94%
Vodafone Group (VOD) 102.70p -0.92%

FTSE 250 - Risers

Herald Investment Trust (HRI) 2,645.00p 7.52%
Clarkson (CKN) 4,170.00p 4.64%
4Imprint Group (FOUR) 4,140.00p 4.15%
Chemring Group (CHG) 527.00p 3.33%
Harbour Energy (HBR) 192.20p 3.33%
Man Group (EMG) 253.40p 2.51%
Baltic Classifieds Group (BCG) 197.60p 1.86%
Ithaca Energy (ITH) 156.60p 1.82%
BlackRock World Mining Trust (BRWM) 902.00p 1.81%
Pagegroup (PAGE) 227.00p 1.70%

FTSE 250 - Fallers

Senior (SNR) 214.50p -3.16%
Endeavour Mining (EDV) 3,990.00p -2.64%
Pets at Home Group (PETS) 196.00p -1.95%
Shaftesbury Capital (SHC) 144.40p -1.77%
Great Portland Estates (GPE) 324.50p -1.52%
Greggs (GRG) 1,632.00p -1.51%
Bellway (BWY) 2,768.00p -1.49%
Derwent London (DLN) 1,858.00p -1.48%
Moonpig Group (MOON) 207.00p -1.43%
OSB Group (OSB) 626.50p -1.42%