Europe open: Stoxx up as Rio, Glencore merger rumours in focus

(Sharecast News) - European markets opened higher on Friday as more upbeat corporate results in the US and talk that mining giants Rio Tinto and Glencore had been in merger talks boosted sentiment. The pan-European Stoxx 600 index was up 0.56% at 523 in early deals. Mining stocks were in focus after Bloomberg reported Glencore had been in talks with Rio Tinto to explore a merger that would be the industry's largest.

"European stock markets have added a touch to yesterday's gains as investors digested the latest dishes that earnings season on the continent had to offer," said Derren Nathan, head of equity research at Hargreaves Lansdown.

In economic news, investors will be waiting on eurozone final inflation data for last month. Flash data showed that annual inflation in the euro zone rose to 2.4% in December - the bloc's third consecutive monthly rise.

Elsewhere, retail sales in the UK disappointed, falling unexpectedly fell in December, according to data released on Friday by the Office for National Statistics.

Retail sales declined by 0.3% on the month following a downwardly-revised 0.1% increase in November. Economists were expecting a 0.4% jump.

"This was driven by a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected," said ONS senior statistician Hannah Finselbach.

In equity news, shares in Glencore and Rio Tinto were rising on Friday on the back of reports that the two companies have been discussing a potential merger.

According to Bloomberg News, which cited people close to the matter, discussions were at an early stage but it's unclear whether these talks were still ongoing. Sources cited by the Financial Times said talks were held as recently as October.

Nevertheless, if successful, the tie-up of the two groups would represent the biggest deal in mining history, with Rio Tinto already the world's second-largest miner behind Australian rival BHP.

Stellantis shares gained despite the Fiat owner posting a 9% drop in fourth-quarter shipments.

Reporting by Frank Prenesti for Sharecast.com