European equity markets traded mostly higher on Friday after finishing the previous session little changed, with sentiment lifted by stronger-than-expected economic data from Germany.
Investors reacted positively to figures showing German industrial production rose for a third consecutive month in November, defying expectations and helped by a recovery in automotive output. The data added to signs that Europe’s largest economy may be stabilising toward year end.
The benchmark indices reflected the improved mood, with France’s CAC 40 up about 1.1%, London’s FTSE 100 gaining roughly 0.8% and Germany’s DAX advancing around 0.5%.
In corporate news, mining heavyweight Glencore (LSE:GLEN) rallied strongly, while Rio Tinto (LSE:RIO) moved lower. The two companies confirmed they are in early-stage talks over a potential combination involving some or all of their operations, with an all-share merger among the options under discussion.
Shares in Peer American climbed after reports suggested its proposed merger with Canada’s Teck Resources is on track to secure antitrust approval in Europe.
Gurit Holding (LSE:0QQR) surged after the Swiss composites specialist announced a five-year core materials kits supply agreement valued at around CHF 250 million.
Herald Investment Trust (LSE:HRI) also jumped, after unveiling plans for a tender offer that would allow shareholders to sell up to 100% of their holdings at close to net asset value, a move aimed at resolving a dispute with activist investor Saba Capital.
Shares in Halma (LSE:HLMA) moved higher after the company agreed to acquire Italian safety systems specialist Safetec Srl, strengthening its industrial safety portfolio.
Dutch semiconductor equipment maker ASML (EU:ASML) also advanced, supported by better-than-expected fourth-quarter revenue reported by Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker.
On the downside, J Sainsbury (LSE:SBRY) fell sharply after the UK’s second-largest grocer reported weaker sales at its Argos general merchandise chain during the key Christmas quarter.
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