Susannah Streeter, chief investment strategist, Wealth Club said: “There’s been a ripple of relief on financial markets as hopes rise that the Fed won’t have to go so hard and fast in raising interest rates.
asserted
Fed → say → rates
Treasury and gilt yields have eased off, and equity markets are on a rising tide, as the rush of worry has started to recede.”
asserted
rush → ease → worry
In London, the FTSE 100 index ended up 33.68 points, 0.3%, at 10,461.95.
asserted
index → end → 10,461.95
The FTSE 250 rose 51.03 points, 0.2%, to 24,194.24, and the AIM all-share firmed 1.71 points, 0.2%, to 783.75.
asserted
AIM → rise → 783.75
Stocks received a boost early afternoon London time after a weaker-than-expected US jobs report saw markets price in a reduced chance of an interest rate increase at the Federal Reserve’s October meeting.
asserted
markets → receive → meeting
US non-farm payroll employment increased by 29,000 in September, slowing sharply from a downwardly revised 133,000 increase in August and below the FXStreet consensus of 90,000.
asserted
employment → increase → 90,000
July’s change was revised down by 31,000 to a decline of 10,000 jobs from an initially reported increase of 21,000, while August’s gain was cut by 29,000 to 133,000 from 162,000.
ING said the weaker-than-predicted figures have further diminished the chances of an October interest rate hike in the US.
asserted
figures → revise → US
The CME FedWatch tool now puts a 80% probability on the Federal Reserve leaving rates on hold in October, compared to 76% on Thursday, and just 36% a week ago.
asserted
Reserve → put → Thursday
TD Economics economist Thomas Feltmate called it a “Goldilocks employment report” from the Fed’s standpoint.
asserted
Feltmate → call → standpoint
“While job growth moderated relative to August, the three-month moving average suggests hiring is still running close to the break-even rate,” he pointed out.
uncertain
he → moderate → rate
Mr Feltmate thinks that overall, the labour market remains in a “good spot”.
asserted
market → think → spot
“Hiring has improved since last year, but not by so much that it’s adding to inflationary pressures.
asserted
it → improve → pressures
This reduces the urgency for the Fed to follow up with another hike in October,” he added.
asserted
he → reduce → October
The data saw the dollar give back some of its recent gains against most leading currencies, although it held firm against the yen.
asserted
it → see → yen
The pound was quoted at 1.3233 dollars on Friday, up from 1.3204 at the same time on Thursday.
asserted
pound → quote → Thursday
Against the euro, sterling firmed to 1.1750 euros from 1.1739.
asserted
sterling → firm → 1.1739
In European equity markets on Friday, the Cac 40 in Paris ended up 0.8%, while the Dax 40 in Frankfurt closed 1.2% higher.
asserted
Dax → end → Frankfurt
In Europe, investors weighed figures that showed eurozone inflation accelerated sharply in September.
asserted
inflation → weigh → September
Preliminary figures from Eurostat showed annual inflation in the euro area rose to 3.8% in September from 3.2% in August, ahead of the FXStreet consensus of 3.6%.
asserted
inflation → show → %
On a monthly basis, consumer prices increased 0.6%.
asserted
prices → increase → basis
Energy prices recorded the highest annual inflation rate, accelerating to 18.8% from 14.3% in August.
asserted
prices → record → August
In New York, markets also advanced.
asserted
markets → advance → York
The Dow Jones Industrial Average was up 0.3% at the time of the closing bell in London.
asserted
Average → close → London
The S&P 500 was 0.7% higher, and the Nasdaq Composite advanced 1.2%.
asserted
Composite → advance → ?
The yield on the US 10-year Treasury was quoted at 5.26% on Friday, trimmed from 5.30% at the same time on Thursday.
asserted
yield → quote → Thursday
The yield on the US 30-year Treasury was quoted at 5.61%, down from 5.63%.
asserted
yield → quote → %
Wealth Club’s Ms Streeter said the US job figures have helped after the “jolt of deep unease” which had hit bond markets this week over the prospects of inflation bedding in and prompting a rapid hiking cycle.
asserted
inflation → say → cycle
BT chief executive Allison Kirkby met with officials in the Department for Digital, Culture, Media & Sport to gauge whether a possible bid for TalkTalk would lead to a lengthy competition watchdog probe, the FT reported.
asserted
FT → meet → probe
Glencore was also in the green, up 3.0%, after announcing it has received approval for Minera Agua Rica Alumbrera in Argentina, and increasing full-year marketing adjusted earnings before interest and tax guidance.
But it was a day to forget for shareholders in IG Group.
asserted
it → announce → Group
Shares in the trading platform plummeted 23% as it said full-year revenue and earnings will be below market expectations.
asserted
revenue → plummet → expectations
In a trading statement, London-based IG said it now expects total revenue growth to be in a mid-single-digit per cent range year-on-year in 2026.
asserted
growth → base → 2026
According to a company-compiled consensus, analysts forecast revenue of £1.26 billion in 2026, which would be up 12% from 2025’s £1.12 billion.
uncertain
which → accord → 2025
Chief executive Breon Corcoran said: “Lower Q3 revenue reflected reduced [over-the-counter] revenue retention in less supportive market conditions, and I remain confident in meeting our medium-term guidance.”
asserted
I → say → guidance
The warning saw shares in industry peer CMC Markets drop 4.4% on the FTSE 250.
Plus500 shares were as much as 11% lower after the IG update, though shares recovered some lost ground to close down 5.6%, after a mid-morning statement in which it announced it is trading in line with market expectations amid a “strong” cash position.
asserted
it → see → position
Also on the FTSE 250, investors raised a glass to pub operator JD Wetherspoon.
asserted
investors → raise → Wetherspoon
Shares surged 12% as it reported strong current trading alongside full-year results.
asserted
it → surge → results
Like-for-like sales in the nine weeks to September 27 rose 8.6%, helped by “exceptional weather”, the firm said.
asserted
firm → rise → weather
Brent oil was quoted at 100.50 dollars a barrel in London on Friday at the time of the equity market close, down from 101.71 dollars late on Thursday.
asserted
oil → quote → Thursday
G7 countries said on Friday there would be no ban on diesel exports between them and called on other powers to refrain from such restrictions.
asserted
countries → say → restrictions
EU chief Ursula von der Leyen on Friday welcomed the deal that saw off a US threat to impose a ban on diesel exports by coordinating the release of fuel reserves.
asserted
that → welcome → reserves
…and 3 more, not listed.
The Aporia
