European shares on track for fourth straight weekly gain as yields fall

(Reuters) – European shares advanced in broad-based gains on Friday as government bond yields continued to ease, keeping the STOXX 600 on track for its fourth straight weekly gain.

The pan-European STOXX 600 was up 0.4% as of 0815 GMT, on track for a more than 1.5% jump for the week.

Construction and materials stocks rose 0.8%, amongst the top STOXX sub-sectors, while utilities added 0.7%.

Yields across European government bonds eased, with the yield on the 10-year bund last at 2.494%, down for the third straight day.

UK’s FTSE 100 outperformed its continental peers, gaining 0.8% after British retail sales fell unexpectedly in December, adding to a run of downbeat economic indicators that are likely to further boost expectations for a Bank of England interest rate cut next month.

Glencore (OTC:GLNCY) gained 1.9%, while Rio Tinto (NYSE:RIO)’s London-listed shares were up 1.2%. Glencore approached Rio Tinto late last year about combining the two big copper producers but the discussions are no longer active, Reuters reported.