Jan 9 (Reuters) - London stocks edged higher on Friday, rebounding after two sessions of losses, as Glencore provided a boost amid early talks of a merger with Rio Tinto, a move that could potentially create the world's largest mining company.
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 GMT and on track for a second straight weekly gain. The domestically focused mid-cap index added 0.2%, holding near its four-year peak and on pace for fourth straight weekly gain.
Energy stocks also supported gains as oil prices rose for a second day, up more than 1%, with BP and Shell rising about 2.2% each.
Separately, British lawmakers urged giving the Bank of England powers to collect private credit data if its stress test fails to reveal risks in the fast-growing market, with results from the exercise due in 2027.
Among other stocks, Anglo American rose 2.7%, a day after a filing from the European Commission showed that the miner's deal with Canada's Teck Resources is heading for antitrust clearance in Europe.
Sainsbury's, Britain's second-largest supermarket group, reported a rise in underlying sales for the key Christmas quarter, but shares fell 5.3% as weakness in general merchandise offset the gains.
Investors are also 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.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)
