Overview
- U.S. nonfarm payrolls rose by just 29,000 in September, a much smaller gain than expected that pushed futures-implied odds of an October Fed rate increase down into the low 20% range.
- The G7 and allies announced coordinated releases of up to 100 million barrels of crude and diesel, which helped push Brent and WTI lower and eased immediate inflation worries tied to fuel costs.
- Stocks rallied on the headlines with technology leading gains and the Nasdaq 100 closing at a record, but most European and UK indexes remained on track for weekly declines after an earlier selloff.
- Treasury and European sovereign yields briefly fell after the jobs news and oil announcement but then reversed higher during the session, keeping borrowing costs and fiscal pressure elevated.
- Company-specific shocks drove extra volatility: IG Group cut revenue guidance and its shares plunged while takeover talk around BT/TalkTalk and strong results at some firms produced sharp stock moves.