GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
London shares recover as bond sell-off eases, oil prices slip - Finance news and analysis from Global Banking & Finance Review
Finance

London shares recover as bond sell-off eases, oil prices slip

Published by Global Banking & Finance Review

Posted on October 2, 2026

2 min read

· Last updated: October 2, 2026

Add as preferred source on Google

London Shares Recover as Bond Sell-Off Eases, Oil Prices Slip and Market Stabilizes

Market Overview and Key Developments

Oct 2 (Reuters) - The UK's FTSE 100 rebounded on Friday, as easing oil and bond yields helped allay inflation concerns after a global bonds sell-off dented risk appetite earlier this week. 

The blue-chip FTSE 100 index rose 0.28% to 10,455.34 points by 1007 GMT, but was headed for its sharpest weekly decline since April. The midcap FTSE 250 climbed 0.52% to 24,267.39 points.

Commodities and Global Market Movements

Oil Prices and Energy Supply

• Oil prices eased about 3% after a sharp rise a day earlier as reports about talks on additional diesel and crude stock releases eased concerns over tight global energy supplies [O/R]

Bond and Currency Market Volatility

• Global shares rose as wild volatility in bond and currency markets eased ahead of key US jobs data, which could shape expectations for the Federal Reserve's next policy move

• Gilt yields dropped, with the benchmark 10-year gilt yield falling to 5.332% after climbing to its highest since 2007 in the previous session

Sector Performance

Homebuilders and Banks

Homebuilders Rebound

• The retreat in yields helped push rate-sensitive homebuilders up 1.1% after a 5% drop a day earlier

Banks Under Pressure

• Still, banks continued to remain under pressure, with the index of UK lenders set for its biggest weekly drop since March

Notable Stock Movers

IG Group and Peers

• Among stocks, IG Group tumbled 22% after the online trading platform cut its 2026 revenue growth forecast, citing weak market conditions that hurt client retention in its over-the-counter (OTC) derivatives business. Peers Plus 500 and CMC Markets declined 4.7% and 8.8%, respectively

BAE Systems

• BAE Systems advanced about 1% after reports that the company is among the potential bidders that are in the early stages of exploring an offer for Robin Radar Systems

J D Wetherspoon

• Pub chain J D Wetherspoon climbed 6.9% after reporting stronger sales growth since July, aided by sunny weather, while warning of rising costs and closures

(Reporting by Anand Gopal in Bengaluru; Editing by Shinjini Ganguli)

Key Takeaways

  • UK gilt yields pulled back from multi‑decade highs, helping to restore confidence in rate‑sensitive sectors.
  • Oil prices eased approximately 3%, as talks over additional crude and diesel reserve releases alleviated supply tightness concerns.
  • IG Group shares plunged sharply—by over 25%—after cutting its 2026 revenue growth forecast amid weaker OTC trading conditions.

Frequently Asked Questions

Why did London shares recover today?
London shares rebounded as easing oil and bond yields helped allay inflation concerns after recent market volatility.
How did the FTSE 100 and FTSE 250 perform?
The FTSE 100 rose 0.28% and the FTSE 250 climbed 0.52%, though both were headed for weekly declines.
What influenced the fall in oil prices?
Oil prices slipped about 3% due to talks on additional diesel and crude stock releases, easing concerns over tight supplies.
Which UK sectors or stocks stood out in today’s trading?
Homebuilders rose 1.1% as yields fell, banks were under pressure, IG Group tumbled 22%, and J D Wetherspoon gained 6.9%.
What happened to gilt yields?
The 10-year gilt yield dropped to 5.332% after reaching its highest level since 2007 in the previous session.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category