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 0.3% after Thursday’s close left the index headed for its worst week since August. Treasuries of all durations were little changed. The premium on French 10-year yields over their German counterparts hit the highest level since 2011 as unease persisted over policy gridlock and missed deficit targets in Paris. The dollar snapped a four-day run of gains.
Brent fell toward $100 a barrel as European countries were said to discuss the release of strategic reserves. Traders pared expectations for US rate hikes to only one move this year, while the odds of more than three over the next 12 months also receded.
The US jobs report will be key 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 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.”
Andrea Tueni at Saxo Bank warned that a blowout report could trigger a fresh surge in yields and put stocks at risk. “US equity markets have so far managed to cope with really elevated bond yields, but I’m not sure how high these can go from here before something breaks,” he said.
High oil prices, technology giants’ surging demand for capital and a crowded short base in Treasury futures this week fueled a spike in bond volatility that rippled across asset classes. Thursday brought an unusual divergence, with Treasuries rallying on haven demand 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 was little changed.
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 0.4% as of 11:23 a.m. London time S&P 500 futures rose 0.4% Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average rose 0.4% The MSCI Asia Pacific Index fell 0.3% The MSCI Emerging Markets Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1233 The Japanese yen rose 0.3% to 157.63 per dollar The offshore yuan was little changed at 6.7089 per dollar The British pound was little changed at $1.3203 Cryptocurrencies
Bitcoin rose 1.9% to $86,252.51 Ether rose 1.5% to $2,738.31 Bonds
The yield on 10-year Treasuries declined one basis point to 5.23% Germany’s 10-year yield declined nine basis points to 3.42% Britain’s 10-year yield declined seven basis points to 5.33% Commodities
Brent crude fell 2.3% to $99.98 a barrel Spot gold fell 0.2% to $4,168.92 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling and Margaryta Kirakosian.
©2026 Bloomberg L.P.
