Global equity indices rose on Friday as volatility in bond markets eased, giving investors room to focus on US jobs data that could sway the Federal Reserve's next move. European and US index futures gained, but Asian markets split, with Hong Kong's Hang Seng falling while Tokyo's Nikkei held onto weekly gains.
The pan-regional STOXX 600 rose 0.8% in early trade, though the index was still heading for a weekly drop of about 1%. US futures also advanced: Nasdaq futures gained 0.7% and S&P 500 futures rose 0.4%.
Asia splits as Hang Seng slides
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was little changed and on track for a weekly decline of 1.2%. Japan's Nikkei dropped 0.9% on the day but gained almost 3% for the week.
Mainland Chinese markets are closed through next Wednesday for a public holiday, while Hong Kong's Hang Seng index slid 2.7% on Friday after returning from its own holiday break.
Bond selloff eases before the jobs report
The gains follow weeks of pressure from a global bond rout. The German 10-year yield was down 6.5 basis points on Friday, as investors favored German debt over other euro zone bonds. In France, the 10-year yield fell 4 basis points to 4.892%, pushing the gap to German yields to 149 basis points, the widest since the euro zone debt crisis in 2012.
Meanwhile, the US 10-year Treasury yield rose to its highest level in 24 years on Thursday, ahead of Friday's labor market report. Forecasts center on a gain of 90,000 nonfarm payrolls in September, with the unemployment rate expected to hold at 4.1%.
A hot print could revive bets on a second interest rate rise from the Federal Reserve this month, a move currently priced at just 25% after two top policymakers said this week they wanted more data first. A December move is still fully priced in.
The bond rout has also driven safe haven flows into Treasuries, the dollar, and the Swiss franc, with the euro nursing losses at $1.1257 after hitting its lowest level since May 2025.
Source: Investing.com
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