European shares opened higher on Friday, driven by strong performance in mining and energy sectors, with the STOXX 600 index gaining 0.4% by 0809 GMT. The rally put the benchmark index on track for its longest weekly winning streak since May, reversing two sessions of losses attributed to weaker earnings and geopolitical tensions.

Mining Sector Leads Rally

Glencore emerged as the standout performer, surging 8% to touch its highest level since July 2024. The dramatic rise followed Rio Tinto's announcement on Thursday that it is in early talks to acquire Glencore, a potential deal that would create the world's largest mining company.

Anglo American also contributed to the sector's strength, rising 2.4% following a European Commission filing indicating that the miner's deal with Canada's Teck Resources is heading for antitrust clearance in Europe.

Sector Performance Breakdown

Energy stocks and miners led the market advances, demonstrating strong investor appetite for commodity-related investments.

Technology Stocks Gain Momentum

The technology sector also showed positive momentum, with Dutch chip equipment maker ASML adding 2.1% after Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected fourth-quarter revenue. Chipmaker STMicroelectronics contributed to the sector's gains, rising nearly 1%.

Market Outlook

Investors are awaiting a crucial U.S. jobs report scheduled for Friday, which is expected to show a slowdown in job growth for December. The anticipated deceleration is attributed to increased caution among businesses, potentially influencing broader market sentiment and monetary policy expectations.

The current rally represents a notable recovery from recent weakness, with European markets demonstrating resilience despite ongoing geopolitical uncertainties and mixed corporate earnings results.

European shares opened higher on Friday, reversing two sessions of losses as mining giant Glencore's surge lifted broader market sentiment. The STOXX 600 index gained 0.4% by 0809 GMT, putting the benchmark on track for its longest weekly winning streak since May.

Mining Sector Drives Market Rally

Glencore emerged as the standout performer with an 8% jump that propelled the stock to its highest level since July 2024. The surge came after Rio Tinto announced on Thursday that it is in early talks to acquire Glencore, a potential deal that would create the world's largest mining company. However, Rio Tinto shares declined 2.2% as investors weighed the acquisition costs.

Anglo American also contributed to mining sector strength with a 2.4% gain, following a European Commission filing indicating that the company's deal with Canada's Teck Resources is progressing toward antitrust clearance in Europe.

Sector Performance Overview

Energy stocks and miners led the market advances, demonstrating strong momentum across commodity-related sectors. The positive sentiment marked a reversal from recent sessions when weaker earnings reports and geopolitical tensions had dampened investor confidence.

Technology Sector Contributes to Gains

Technology shares also supported the broader market rally. Dutch chip equipment maker ASML advanced 2.1% after Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected fourth-quarter revenue results. The positive semiconductor news also lifted STMicroelectronics by nearly 1%, reflecting improved sentiment across the chip sector.

Market Outlook

Investors are awaiting the release of crucial U.S. jobs data on Friday, which is expected to show a slowdown in job growth for December. The anticipated deceleration reflects increased caution among businesses, potentially influencing broader market sentiment and monetary policy expectations.