European shares hit an all-time high on Friday, lifted by an 8.3% jump in Glencore (GLEN.L) that put the STOXX 600 index on track for its longest weekly winning streak since May.
The rebound, after two sessions of losses, signals that investors remain resilient despite a batch of weak earnings reports and a fresh bout of geopolitical tensions triggered by U.S. actions in Venezuela.
Glencore shares touched their highest since July 2024, while Rio Tinto (RIO.L) fell 2.6%. Rio said on Thursday it is in early talks to buy Glencore, a deal that would create the world's largest mining company.
The gains in Glencore helped the STOXX 600 (.STOXX) index climb 0.4% by 0938 GMT.
However, Morningstar's chief equity strategist Michael Field said that a healthy dose of scepticism was still warranted.
"We've seen this before where deal talks in this industry roll on for a few months and then fall apart. People overestimate the benefits that can be had by doing these mergers and that usually comes out after a few months of due diligence," he said.
TSMC RESULTS BOOST CHIPS OUTLOOK
Technology (.SX8P), miners (.SXPP) and energy stocks (.SXEP) led the advance in the STOXX 600, rising 1.8%, 1.7% and 1.6%, respectively.
Dutch chip equipment maker ASML (ASML.AS) added 3.9% and was the biggest gainer in the tech index, after HSBC raised its price target on the stock.
Germany's Infineon (IFXGn.DE) rose 1.3%, while STMicroelectronics (STMPA.PA) added 1%.
Tech shares also got a boost after upbeat fourth-quarter results from TSMC (2330.TW), the world's largest contract chipmaker.
Meanwhile, shares of Anglo American (AAL.L) rose 2.4%, a day after a filing from the European Commission showed that the miner's deal with Canada's Teck Resources (TECKb.TO) is heading for antitrust clearance in Europe.
Investors are waiting for a crucial U.S. jobs report on Friday, which is expected to show a slowdown in job growth in December due to caution among businesses.
Separately, the U.S. Supreme Court is expected to issue a ruling on the legality of President Donald Trump's sweeping global tariffs.
"The ruling could be material. But I expect that the U.S. administration will find some legal workaround even if the tariffs are deemed illegal by the Court," Morningstar's Field said.
