(Bloomberg) — European stocks gained, boosted by the prospect of a big mining-sector merger and a further drop in global bond yields.
The Stoxx 600 index rose 0.6%, on course for its strongest week since September, with basic resources shares outperforming after Bloomberg News reported that Glencore Plc and Rio Tinto Group held early-stage talks about combining their businesses. The news, alongside a weaker pound, helped London’s FTSE 100 hit a record high.
China-focused European sectors such as retail and auto also climbed after data suggested Beijing’s stimulus blitz is succeeding in shoring up economic growth.
US futures signaled the S&P 500 is poised to add to its biggest weekly gain since November’s election, after data and comments from Federal Reserve policymakers suggested the central bank will have room to cut interest rates this year. Ten-year Treasury yields edged lower, standing more than 15 basis points below recent multi-month highs.
“Even equity managers were more concerned over rates than earnings,” said Kevin Thozet, a member of the investment committee at Carmignac. “What we have had is reassuring data on this front — whether retail sales or inflation — hinting that the US economy may not be overheating. This has allowed for fixed income markets to take a bit of a breather.”
Investors’ focus now will be on President-elect Donald Trump’s inauguration on Monday and on his plans for tariff hikes, tax cuts and mass deportation of undocumented migrants.
“Key things to be aware of are whether Trump goes big from the very first day, coming up with executive orders and being very vocal,” Carmignac’s Thozet said. “He has been saying a multitude of things and we will see if he is more talking than acting.”
In currency markets, Bloomberg’s dollar index inched higher on Friday as data continues to highlight the strength of the US economy relative to developed-market peers. The pound slipped as much as 0.6% to near the weakest level since November 2023, and UK government yields slid after a surprise drop in retail sales added to evidence of a struggling British economy.
Earlier, Asian stocks snapped a three-day winning streak, largely shrugging off news that China’s economy had expanded at its fastest pace in six quarters to hit the government’s growth goal last year. Analysts say the growth report for 2024 is overshadowed by looming US tariffs on Chinese exports.
Some of the main moves in markets:
Stocks
-
The Stoxx Europe 600 rose 0.6% as of 9:52 a.m. London time
-
S&P 500 futures rose 0.3%
-
Nasdaq 100 futures rose 0.4%
-
Futures on the Dow Jones Industrial Average rose 0.2%
-
The MSCI Asia Pacific Index fell 0.2%
-
The MSCI Emerging Markets Index rose 0.1%
Currencies
-
The Bloomberg Dollar Spot Index rose 0.1%
-
The euro was little changed at $1.0293
-
The Japanese yen fell 0.4% to 155.72 per dollar
-
The offshore yuan was little changed at 7.3495 per dollar
-
The British pound fell 0.4% to $1.2193
Cryptocurrencies
-
Bitcoin rose 1.7% to $101,819.07
-
Ether rose 2.6% to $3,405.24
Bonds
-
The yield on 10-year Treasuries declined one basis point to 4.60%
-
Germany’s 10-year yield declined two basis points to 2.52%
-
Britain’s 10-year yield declined three basis points to 4.65%
Commodities
-
Brent crude was little changed
-
Spot gold fell 0.3% to $2,706.40 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess and Divya Patil.
©2025 Bloomberg L.P.
Shared by Golden State Mint on GoldenStateMint.com
