Global Stocks Move Mixed As Bond Yields Ease And Markets Await U.S. Jobs Data

Global stock markets showed mixed results on Friday, October 2, 2026, while European shares edged higher as a global bond sell-off eased. 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 losses across European benchmark indexes on Thursday after government bond yields surged. In Asia, Japan's Nikkei 225 fell 0.9% to 68,309.46, South Korea's Kospi added 0.5% to 7,003.74, and Hong Kong's Hang Seng lost 2.6% to 23,972.29, reaching its lowest level since July. Australia's S&P/ASX 200 rose 0.8% to 8,682.10, and Taiwan's Taiex advanced 0.3%, while mainland China markets remained closed for a holiday. U.S. futures edged up after Treasury yields held steady early Friday, following Wall Street gains where the S&P 500 added 0.2% and the Dow Jones and Nasdaq rose less than 0.1% each. In the bond market, the yield on the 10-year U.S. Treasury stood at around 5.24%, down from Thursday's level of 5.34%, which was the highest since 2002. David Clewell, a portfolio manager at T. Rowe Price, noted that the 5% psychological threshold was crossed last month due to inflationary pressures from a global energy shock driven by the Iran war and rising U.S. government debt. Mr. Clewell suggested that yields could rise toward 5.5% to 6% given resilient U.S. economic growth, though high yields continue to pressure stock markets by increasing borrowing costs. Investors are closely watching the September U.S. monthly jobs report due Friday to gauge the likelihood of an October interest rate hike by the Federal Reserve, following its September rate hike. Meanwhile, oil prices dropped early Friday despite ongoing geopolitical tensions. Brent crude fell 2.3% to $99.95 a barrel, remaining well above late February levels of around $72 per barrel. The U.S. military deployed thousands of troops and a third aircraft carrier to West Asia, following President Donald Trump's threats toward Iran earlier in the week. In currency markets, the U.S. dollar declined to 157.63 Japanese yen, while the euro rose to $1.1255.

Context

Government bond yields move inversely to bond prices, meaning that a bond sell-off pushes yields higher and increases borrowing costs for governments and businesses alike. These financial shifts are closely tied to broader geopolitical conflicts and central bank monetary policies that influence global investor confidence.