Global Stocks Mixed as Bond Sell-Off Deepens Ahead of U.S. Jobs Data

Global stocks showed mixed results on Friday, October 2, 2026, while European shares edged higher following a deeper global bond sell-off and ahead of a key U.S. monthly jobs report.

Market Movements

In early European trading, Britain's FTSE 100 climbed 0.5% to 10,485.00, France's CAC 40 rose 0.6% to 7,883.49, and Germany's DAX gained 0.8% to 25,129.78. This followed sharp declines across European indexes on Thursday driven by surging government bond yields. In Asia, Japan's Nikkei 225 fell 0.9% to 68,309.46, South Korea's Kospi added 0.5% to 7,003.74, Hong Kong's Hang Seng lost 2.6% to 23,972.29 to hit its lowest level since July, Australia's S&P/ASX 200 gained 0.8% to 8,682.10, and Taiwan's Taiex advanced 0.3%. Mainland Chinese markets were closed for a holiday.

Bond Yields and Oil

The yield on the 10-year U.S. Treasury stood at around 5.24% after reaching 5.34% on Thursday, which marked its highest level since 2002. David Clewell, a portfolio manager at T. Rowe Price, noted that the 5% threshold is an important psychological level for investors and suggested yields could rise toward 5.5% to 6%. Meanwhile, oil prices dropped early Friday even as the U.S. sent another aircraft carrier and more troops to West Asia and President Donald Trump threatened further escalations against Iran. Brent crude lost 2.3% to fall below $100 a barrel at $99.95.

Context

Bond yields rise when bond prices fall, which happens when investors demand higher returns due to inflation risks or rising government debt. Higher borrowing costs generally put pressure on stock markets by reducing corporate earnings returns and influencing central bank interest rate decisions.