The FTSE 100 rose on Friday as investors reacted to confirmation that Glencore and Rio Tinto were in talks to create the world’s largest mining company.

London’s leading index was trading 0.4% higher at 10,084 at the time of writing.

“The FTSE 100 solidified its position above 10,000 on Friday after a mixed week which has seen the index attain fresh record levels,” says AJ Bell investment director Russ Mould.

“The mining sector continues to be a plus point for the FTSE 100 with Glencore and Rio Tinto confirming talks about a merger which would create the world’s largest miner.”

Glencore and Rio Tinto confirmed on Friday that they had resumed merger talks to bring together the FTSE 100’s two largest mining groups, with a combined market value of £149bn.

“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,” Derren Nathan, head of equity research, Hargreaves Lansdown explained.

Glencore shares rose 9% on the news while Rio Tinto fell 2%.

“The divergent share price reaction would suggest the market thinks Glencore would be the bigger beneficiary of a deal. A key driver for the merger is the scramble for copper given its role in electrification and constrained supply,” Mould said.

Merger talks helped boost the rest of the FTSE 100’s diversified mining sector, with Antofagasta adding 3% and Anglo American rising 2.4%.

Elsewhere, Sainsbury’s shares were down over 4% after the retailer released its festive trading numbers that revealed another poor period of trading for its general merchandise business.

Grocery sales rose 5.4% in 16 weeks to 3 January 2026 but General Merchandise and Clothing fell 1.1% over the same period.

Analysts see Argos poor performance over the Christmas period as the final nail in the coffin for the unit, with Sainsbury’s likely to seek a disposal to focus on its more successful food business.

“Sainsbury’s has essentially hung up the ‘for sale’ sign over Argos today, after the chain spoiled a decent set of numbers for the supermarket’s core business,” said Chris Beauchamp, Chief Market Analyst at IG. 

“The move to buy Argos looks increasingly like a wrong turn and an unnecessary distraction, especially when competition with Tesco over food sales is poised to heat up once more. Sainsbury’s has more important things to worry about, so the future for Argos is almost certain to see it become the target for yet another bidder.” 

Marks & Spencer continued its rally, sparked by yesterday’s trading update, with another 2% rise. AB Foods gained 1% as it recouped a small proportion of losses sustained yesterday after issuing a profit warning amid slow Primark sales.

Sainsbury’s shares fell on Friday after releasing its festive trading update, with total retail sales (excluding fuel) rising 3.9% in the third quarter and 3.3% over the crucial six-week Christmas period.

But poor performance at Argos overshadowed robust food sales, sending shares down by over 4% at the time of writing on Friday.

Like-for-like sales grew 3.4%, driven by strong grocery performance, which increased 5.4% in the quarter and 5.1% over Christmas. The supermarket giant sold 20% more turkeys than last year as customers chose Sainsbury’s for their main Christmas shop, with Nectar loyalty scheme participants saving an average of £27 on their festive purchases.

Food sales proved the standout performer. Fresh food sales surged 8%, whilst premium own-label range Taste the Difference grew 15%, making it the fastest-growing premium own brand in the market.

The grocer launched over 260 new Taste the Difference products during the quarter, with party food items and festive desserts proving particularly popular. Groceries online sales jumped 14%, boosted by strong growth in on-demand delivery and improved availability.

However, while food sales were strong, Sainsbury’s was dragged down by its Argos business unit. Argos sales fell 1% in the quarter and 2.2% over Christmas, reflecting weak consumer confidence and subdued spending on higher-ticket items such as furniture.

“Keep in mind that Sainsbury’s is more exposed to general merchandise than its peers, owing to its ownership of Argos,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown

“General merchandise is the most cyclical area of the supermarket economy to be in, so being overweight in this arena can really slow sales down when things get tough. Recent initiatives are helping to drive higher sales volumes at Argos, but consumers remain cautious and are steering clear of big-ticket items.”

Rio Tinto and Glencore are in merger talks that could result in the creation of the world’s largest mining company, as deal-making in the sector picked up where it left off in the new year.

Following reports by the Financial Times overnight, Rio Tinto said in a statement on Friday that they: ‘note the announcement by Glencore and confirm that Rio Tinto and Glencore have been engaging in preliminary discussions about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore’. 

Glencore shares jumped over 8% in early trade on Friday, while Rio Tinto slipped 2%.

“Last year’s theme of consolidation in the natural resources sector has shown no sign of let up in the early part of 2026,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“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.”

Rio Tinto and Glencore explored a potential tie around a year ago, but a deal couldn’t be struck at the time. Talks resume with many metals trading near all-time highs.

A successful merger would create a mining behemoth with exposure to pretty much every major metal group, as well as Glencore’s significant coal assets.

“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,” Nathan explained.

The news of a potential tie-up between Glencore and Rio Tinto follows the merger of Anglo American and Teck Resources to form Anglo Tek, which is awaiting antitrust clearance. 

FTSE 100 silver miner Fresnillo was also busy on the M&A front towards the end of last year, snapping up Probe Gold. 

The FTSE 100 was lower on Thursday as investors digested mixed festive trading updates from Tesco, AB Foods, and Marks & Spencer.

London’s leading index was down 0.2% at 10,028 at the time of writing.

Although there will be underlying concerns about geopolitics and what Donald Trump will do next after threatening military action to take Greenland and seizing more oil tankers, there was enough on the corporate front to keep UK-focused traders busy with a raft a festive trading updates.

Tesco shares fell, AB Foods tanked, and Marks & Spencer received a favourable market reaction, after releasing their respective updates.

On the face of it, Tesco’s Christmas trading update wasn’t that bad. Market share was the highest in a decade and group Christmas sales rose 2.4%. But this wasn’t enough for investors with lofty expectations after a strong run in the stock last year, and shares sank 4%.

“Tesco’s share price had a great 2025, but it was accompanied by a sharp increase in its valuation. The consequence of this has been clear this morning,” explained Chris Beauchamp, Chief Market Analyst at IG.

“Simply reporting good numbers isn’t enough to avoid a share price fall, and having fallen short on Q3 sales investors have been given a reason to sell and await a better set of figures.” 

Marks & Spencer, on the other hand, had a much better response to their festive trading period. Shares rose on Thursday

“The festive period delivered a respectable showing in food, with like-for-like sales up 5.6 per cent, but that’s where the Christmas cheer ended. Clothing, home and beauty slipped 2.9 per cent, a reminder that the aftertaste of last year’s cyber-attack still lingers,” Mark Crouch, market analyst for eToro said.

“It’s perhaps unsurprising that food once again did the heavy lifting, underlining the strength of M&S’s core proposition. Yet investors are unlikely to be sweet-talked by groceries alone. The proof, as ever, is in the pudding, and M&S shares are down around 20 per cent since October, signalling doubts that last year’s fallout has been contained.”

The differing reactions to Marks & Spencer’s and Tesco’s results are largely due to share price performance leading up to the results. Marks & Spencer had a torrid end to the year as investors counted the cost of a cyberattack, while Tesco added 50% from its April low to its November high.

Primark-owner was the FTSE 100’s top faller, tanking 11%, after issuing a profit warning amid poor sales at the retailer.

“Primark has had a challenging start to the financial year, with a mixed performance,” said George Weston, Chief Executive of Associated British Foods.

BAE Systems was the FTSE 100’s top riser after Donald Trump announced he would like the US to increase its defence budget to $1.5 trillion from $1 trillion and called on manufacturers to invest in new plants rather than distributing cash to shareholders.

“The proposed sharp increase in the defence budget would be good news for defence contractors, explaining why shares have rallied across the sector,” said Russ Mould, investment director at AJ Bell.

“BAE Systems jumped more than 6% while US names such as Lockheed Martin moved in a similar fashion in pre-market trading.”

Tesco shares sank on Thursday after the grocer delivered a festive trading statement that missed expectations and exposed the vulnerability of the stock’s valuation after a strong run through 2025.

On the face of it, Tesco had a reasonable festive trading period, prompting the supermarket giant to upgrade its profit outlook to the upper end of its £2.9bn to £3.1bn operating profits guidance as it achieves its highest UK market share in over a decade.

The retailer’s market share rose 23 basis points to 28.7%, whilst the 4-week share climbed 31 basis points to 29.4%. This outperformance was driven by volume and value growth ahead of the market.

Fresh food proved a standout category during the festive period, with like-for-like sales up 6.6%, while the premium Finest range achieved 13.0% sales growth, with party food up 22%.

Online sales grew 11.2%, boosted by extended Christmas Eve deliveries, whilst rapid delivery service Whoosh surged 47%. The non-food division also performed well, with Home & Clothing like-for-like sales up 2.1%.

However, retail sales growth missed expectations, and investors dumped the stock on Thursday.

“Tesco posted a softer-than-expected Christmas trading update, signalling that growth is becoming harder to sustain in a more price-sensitive consumer environment,” said Lale Akoner, global market analyst for eToro.

“UK like-for-like sales missed market expectations, reflecting cautious household spending and intensifying competition from discounters, which triggered a sharp negative share price reaction.”

Booker played a part in the disappointment on Thursday, delivering mixed results, with core catering sales up 2.4% supported by specialist merchant Venus. However, core retail sales declined 0.4%, impacted by approximately 200 basis points from a lower-margin national account contract ending in August, alongside continued tobacco market weakness.

“Tesco’s share price had a great 2025, but it was accompanied by a sharp increase in its valuation,” explained Chris Beauchamp, Chief Market Analyst at IG.

“The consequence of this has been clear this morning. Simply reporting good numbers isn’t enough to avoid a share price fall, and having fallen short on Q3 sales investors have been given a reason to sell and await a better set of figures.” 

Marks & Spencer has pleased investors with solid results for its third quarter ending 27 December 2025, with food sales driving growth whilst fashion sales declined amid fragile consumer confidence and unseasonably mild weather.

The retailer’s food business delivered strong performance, with underlying sales rising 6.6% and like-for-like sales up 5.6%. UK volume growth reached 2.3%, with M&S achieving a historic high market share of 4.0% in November – marking over three years of consecutive market outperformance.

Marks & Spencer shares rose on the immediate reaction to the release, gaining 3% in early trade on Thursday.

Food was the real winner over Christmas for M&S. Total food sales hit £2.7 billion, supported by robust demand across core grocery categories. Innovation in Italian ready meals, in-store bakery and deli offerings contributed to growth, whilst value ranges including ‘Remarksable Value’ and ‘Bigger Pack, Better Value’ expanded by 20%.

The division benefited from increased customer numbers and shopping frequency, alongside strong operational execution that reduced markdown and waste versus the prior year.

“Marks & Spencer will be hoping the Christmas quarter provides a springboard into the new year, one the retailer desperately needs,” said Mark Crouch, market analyst for eToro.

“The festive period delivered a respectable showing in food, with like-for-like sales up 5.6 per cent, but that’s where the Christmas cheer ended. Clothing, home and beauty slipped 2.9 per cent, a reminder that the aftertaste of last year’s cyber-attack still lingers.”

Fashion, Home & Beauty sales fell 2.5%, with like-for-like sales down 2.9%, generating £1.3 billion in revenue. Whilst online sales returned to growth, this was offset by declining store sales attributed to reduced high street footfall and lingering effects from an earlier operational incident impacting stock data and management.

Despite entering the sale period with higher stock levels than last year, sell-through rates proved strong. M&S regained market share leadership in the category and now ranks first for customer perceptions of style, quality and value. New season products are resonating with customers, and the Bristol Cabot Circus store is outperforming expectations.

International and Ocado Performance

International sales rose 0.9% to £158 million, with new wholesale agreements and online growth offsetting shipment phasing issues and weaker Indian performance.

Ocado Retail sales increased 13.7% to £843 million, driven by 10.7% volume growth and 11.0% order growth. M&S products on Ocado.com grew 16.3%, representing approximately 30% of total Ocado Retail sales.

“Having been on cloud nine earlier in the year, the cyber incident delivered a stiff dose of reality for M&S management and investors alike,” Crouch said.

“In a fragile consumer environment, M&S cannot afford to let anymore momentum slip through its fingers. Christmas may have steadied the ship, but turning seasonal cheer into durable growth will now require flawless execution.”

Galantas Gold (LON: GAL) is acquiring 100% of the Andacollo Oro gold project in Chile. This is an open pit mine with a historical inferred mineral resource estimate of 5.06M ounce of gold. It has been in production in the past. The seller is owned by Galantas Gold executive Robert Sedgemore, so it is a related party deal. His company bought the mine from Dragones, whose former owner will receive payments of $27.5m in the four years to the end of 2029, as well as initially being issued 91.3 million Galantas Gold shares. Galantas Gold will assume $3m of debt and pay $1.5m to Robert Sedgemore. The share price jumped 178.1% to 28.5p.

Biopesticides developer Eden Research (LON: EDN) says Mevalone has been granted approval in France to use on grapes to control downy and powdery mildew. This is an extension on existing approvals. The opportunity is estimated to be worth €8m. The share price gained 16.7% to 3.15p.

ECR Minerals (LON: ECR) says the Raglan gold project in Queensland will commence mining this month. This will generate cash for the Blue Mountain project. The share price increased 15.9% to 0.365p.

Greatland Resources (LON: GGP) produced 86,273 ounces of gold in the fourth quarter of 2025, up from 80,890 in the previous quarter. Cash increased to $948m. The share price improved 6.76% to 574.6p.

FALLERS

Graphene technology developer Directa Plus (LON: DCTA) says 2025 revenues improved from €6.66m to €7m and the loss will be lower. Cash has fallen to €1.5m, which is much less than the outflow in 2025. A non-core land sale could generate €500,000. Joint ventures and licensing opportunities are being assessed. The share price slumped 25.9% to 10p, but it is still 48% ahead over the past five days.

Extended reality technology company Engage XR (LON: EXR) is still suffering from a tough market with contact delays and poor renewals. In 2025, revenues were €1.9m and net cash has fallen to €1.6m. Cash is being conserved and there are potential opportunities in education. Forecasts are under review. The share price dipped 26.3% to 0.35p.

Goldstone Resources (LON: GRL) operates the Homase gold mine in Ghana which produced 2,912 ounces of gold in 2025 and generated revenues of $10m. Heavy rainfall and inspections held back production. Avrage all-in sustaining cost was $2,781/ounce up until November and it is expected to be $2,500-$2,900/ounce in 2026. Production could reach 4,000 ounces this year. The share price slipped 9.09% to 0.5p.

Oriole Resources (LON: ORR) reports that the first two holes at Mbe North in Cameroon have returned significant gold intersections. The geology is similar to the find in the south of the project area. Greenwood Capital Partners estimates that the new area could beat the exploration target, which is 370,000-605,000 ounces of contained gold. The share price fell 9.09% to 0.3p.

The FTSE 100 eased back on Wednesday as traders sold down positions in miners and oil majors amid a pause in the recent commodities rally. 

With the US incursion into Venezuela proving to be a bit of a non-event for commodity markets, miners and oil majors fell back, dragging the index with them.

Traders may also be marginally nervous about Trump’s plan for Greenland, which could include military action, according to a White House communication released overnight.

London’s leading index was trading down 0.6% at 10,055 at the time of writing – but was still firmly above the 10,000 level. One would expect this mark to be tested in the coming days as traders test 10,000’s validity as a support level. 

“The FTSE 100 retreated from yesterday’s record high amid murmurings about the fate of Greenland and lower oil and precious metals prices,” says AJ Bell investment director Russ Mould.

“As well as pledging to turn over between 30 and 50 million barrels of Venezuelan oil to the US following the weekend strikes on the country, prompting concern about crude oversupply and pressuring prices, President Trump is looking at options to acquire Greenland – with military action apparently not ruled out.

“For now, the market doesn’t appear to be too concerned that an attack will materialise, something Danish prime minister Mette Frederiksen has warned would spell the end of Nato.”

There were slightly more FTSE 100 risers than fallers on Wednesday, but the degree of selling of miners and oil companies meant the index dropped.

Antofagasta, one of the best performers in the early days of 2026, was the top faller on Wednesday, falling 4.8%, as copper prices stalled. 

Lower oil prices weighed on the FTSE 100’s oil majors, with BP and Shell shares dropping by over 4%.

A pullback in silver prices after a storming end to 2025 hit Fresnillo shares, which were also down by more than 4%.

There were a few FTSE 100 corporate updates on Wednesday and little in the way of economic catalysts, so investors will look to the US markets for a steer as the session progresses.

The S&P 500 closed at a record high overnight as confidence in AI stocks returned.

The FTSE 100 outperformed the S&P 500 in 2025 as defensive sectors outperformed tech. It will be interesting to see how the early months of 2026 play out with US tech, especially related AI shares, trading well off recent highs and the FTSE 100’s more defensive constituents still riding high.