UK Stocks Bounce Back as Oil Prices Ease and US Jobs Data Loom
The UK stock market started the trading session on Friday, October 2, on a positive note after a significant selloff in the previous day. The FTSE 100 index was up 0.1% at 10,440.53 by 8:25 am BST, having dropped 1.7% on Thursday.
The decline in oil prices and market speculation about the impact of upcoming US jobs data on interest rates contributed to the early gains. Brent crude fell by around 0.9% to trade at $101.32 a barrel, while West Texas Intermediate crude decreased by about 1.3% to trade at $91.71.
The UK gilt yields remain a major concern for investors, with the 30-year yield reaching its highest level since 1998 on Thursday. The 10-year UK gilt yield rose to around 5.45%. An increase in yields can affect the equities market by hiking up the cost of borrowing.
The US Non-Farm Payroll Report is expected later today, with analysts predicting job creation numbers of roughly 90,000 in September and an unemployment rate of 4.1%.