Stocks Climb as Calm Prevails Before Payrolls: Markets Wrap
(Bloomberg) — Stocks climbed and sovereign bonds were broadly firm in calmer trading following a week in which markets were lashed by sharp swings in yields, with the US payrolls report still to come.
S&P 500 futures were up 0.5% after Thursday’s close left the index headed for its worst week since August. Treasuries of all durations were little changed. French bonds once again lagged as unease persisted over policy gridlock and missed deficit targets in Paris. The dollar was on course for its longest run of weekly gains since January last year even as it slipped 0.2% on Friday.
Brent crude fell below $100 a barrel, supporting the upbeat sentiment, as European countries were said to discuss the release of strategic reserves. Traders pared expectations for Federal Reserve rate hikes to just one move this year, while the odds of more than three over the next 12 months also receded.
The US jobs report will be a key release at a time when resilient data are supporting riskier assets while giving the Fed room to fight inflation. Economists estimate the reading will show nonfarm payrolls rose 90,000 in September after climbing by the most in five months in August.
“If we get a very high number or a materially higher than 90,000, you could expect more pressure on yields from here,” said Sotirios Nakos, head of multi-asset portfolio management at Aviva Investors.
For Mabrouk Chetouane at Natixis IM, strong data will bode well for third-quarter earnings and see traders price “growth and Fed hikes accordingly.”
Elevated oil prices, surging capital demand from technology giants and a crowded short base in Treasury futures fueled a spike in bond volatility this week that rippled through financial markets. Thursday brought an unusual divergence, with Treasuries rallying in a hunt for havens while riskier debt from countries such as France and Italy came under intense selling pressure.
Fresh evidence of building price pressures came from the euro area, where inflation quickened to a three-year high. Still, European assets mostly shrugged off the news amid a more settled tone, with the Stoxx 600 paring losses for the week and regional bonds rallying. The euro snapped a four-day losing streak.
What Bloomberg Strategists Say:
“France’s fiscal problems are going nowhere soon. OATs remain the problem child of government bond markets and attention is increasingly turning to the negative feedthrough to the currency. Further ECB tightening was becoming less euro positive as the growth costs rose and the prospect of eventual cuts increased. Now sovereign stress adds another cost.”
Corporate News:
Commodities trading giant Gunvor Group is renaming itself Centalion Group Ltd. and plans to redomicile its corporate headquarters to Singapore, marking a shift for its new ownership after a management buyout last year. IG Group Holdings Plc shares plunged the most in almost a decade after the London-based retail trading firm reported a slump in third-quarter revenue. Nike Inc. said it’s consolidating its operations and cutting jobs while warning that its sales slump is poised to deepen. Anthropic PBC is seeking to go public as soon as the middle of November, according to people familiar with the matter. Broadcom Inc.’s Wall Street syndicate is starting to gather $60 billion of fresh AI chip financing to benefit Anthropic PBC and other companies, according to people with knowledge of the matter. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.7% as of 10:38 a.m. London time S&P 500 futures rose 0.5% Nasdaq 100 futures rose 0.8% Futures on the Dow Jones Industrial Average rose 0.5% The MSCI Asia Pacific Index fell 0.3% The MSCI Emerging Markets Index was little changed Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro was little changed at $1.1248 The Japanese yen rose 0.3% to 157.64 per dollar The offshore yuan rose 0.1% to 6.7064 per dollar The British pound was little changed at $1.3206 Cryptocurrencies
Bitcoin rose 2% to $86,313.14 Ether rose 1.8% to $2,747.49 Bonds
The yield on 10-year Treasuries declined one basis point to 5.23% Germany’s 10-year yield declined seven basis points to 3.44% Britain’s 10-year yield declined six basis points to 5.33% Commodities
Brent crude fell 3% to $99.28 a barrel Spot gold rose 0.1% to $4,182.01 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling and Margaryta Kirakosian.
©2026 Bloomberg L.P.
