London stocks experienced a modest increase on Friday, recovering from two consecutive days of losses, as Glencore’s performance was bolstered by preliminary discussions regarding a merger with Rio Tinto, a strategic maneuver that could lead to the formation of the world’s largest mining entity.

Glencore shares were up 10% and touched their highest since July 2024, while Rio fell 2.2%. The blue-chip FTSE 100 was up 0.4% by 1044 and on track for a second consecutive weekly gain. The domestically focused mid-cap index added 0.2%, maintaining its position near a four-year peak and on track for its fourth consecutive weekly gain.

Energy stocks experienced gains as oil prices increased for a second consecutive day, rising more than 1%. BP and Shell both saw an approximate rise of 2.2% each. In a distinct development, British lawmakers have advocated for empowering the Bank of England to gather private credit data should its stress test not uncover risks in the rapidly expanding market, with the outcomes of this assessment expected in 2027.

Among other stocks, Anglo American rose 2.7%, a day after a filing from the European Commission indicated that the miner’s deal with Canada’s Teck Resources is progressing towards antitrust clearance in Europe. Sainsbury’s, Britain’s second-largest supermarket group, reported a rise in underlying sales for the key Christmas quarter; however, shares fell 5.3% as weakness in general merchandise offset the gains. Investors are anticipating a significant U.S. jobs report on Friday, which is projected to indicate a deceleration in job growth for December, attributed to increased caution among businesses.