London shares recover as bond sell-off eases, oil prices slip

By Reuters News

Oct 2 (Reuters) - The UK's FTSE 100 rebounded on Friday, as easing oil and bond yields helped allay inflation concerns after a global bonds sell-off dented risk appetite earlier this week.

The blue-chip FTSE 100 index .FTSE rose 0.28% to 10,455.34 points by 1007 GMT, but was headed for its sharpest weekly decline since April. The midcap FTSE 250 .FTMC climbed 0.52% to 24,267.39 points.

  • Oil prices , eased about 3% after a sharp rise a day earlier as reports about talks on additional diesel and crude stock releases eased concerns over tight global energy supplies O/R

  • Global shares rose as wild volatility in bond and currency markets eased ahead of key US jobs data, which could shape expectations for the Federal Reserve's next policy move

  • Gilt yields dropped, with the benchmark 10-year gilt yield falling to 5.332% after climbing to its highest since 2007 in the previous session

  • The retreat in yields helped push rate-sensitive homebuilders .FTNMX402020 up 1.1% after a 5% drop a day earlier

  • Still, banks continued to remain under pressure, with the index of UK lenders .FTNMX301010 set for its biggest weekly drop since March

  • Among stocks, IG Group IGG.L tumbled 22% after the online trading platform cut its 2026 revenue growth forecast, citing weak market conditions that hurt client retention in its over-the-counter (OTC) derivatives business. Peers Plus 500 PLUSP.L and CMC Markets CMCX.L declined 4.7% and 8.8%, respectively

  • BAE Systems BAES.L advanced about 1% after reports that the company is among the potential bidders that are in the early stages of exploring an offer for Robin Radar Systems

  • Pub chain J D Wetherspoon JDW.L climbed 6.9% after reporting stronger sales growth since July, aided by sunny weather, while warning of rising costs and closures

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