The FTSE 100 closed up 115.49 points, or 1.1%, at 10,840.35, outperforming European peers as bond yields eased and investors moved away from volatile technology stocks. Analysts described an AI-trade sell-off driven by worries over AI returns, debt funding and inflation, with the UK seen as a safer haven. US 10-year Treasury yields fell to 5.10% from 5.26% and 30-year yields to 5.42% from 5.57%, as Fed officials reportedly saw no need to rush another rate hike this month. Anthropic told investors its third-quarter revenue rose nearly 50% to $16.8 billion from $11.5 billion in the second quarter, though growth slowed from the previous quarter. UK GDP rose 0.1% month-on-month in August, beating expectations for a decline, while Experian led FTSE 100 risers with a 5.9% gain and Computacenter fell 5.6%.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on lbc.co.uk ↗
Related news
- Analysis - Europe bond market turmoil shines a spotlight on hedge fund role in key markets
- AI Has Driven Bond Yields Higher, Says JPMorgan's Priya Misra — Sees Bonds As Hedge Against AI Trade
JPMorgan Asset Management's Priya Misra says AI investment has helped push bond yields higher, partly due to economic resilience and AI-driven competition for capital, and that much of the rise in longer-term yields reflects higher real rates rather than inflation expectations. The 10-year U.S. Treasury yield was around 5.09% on Friday morning, down from about 5.24% at the end of the previous week as AI stocks came under pressure. Misra sees markets pricing in three Fed hikes as overdone, attributes inflation mainly to supply shocks such as tariffs and oil, and describes AI as a structural demand shock. She still views U.S. Treasuries as a safe haven and high-quality fixed income yielding 6% to 7% as an attractive hedge against weakness in the AI trade, while warning that sufficiently high real rates could cause something to break.
- JPMorgan's Dimon Says Federal Debt May Lead to Bond Volatility, Higher Rates
JPMorgan Chase CEO Jamie Dimon says federal debt, which adds about $2 trillion a year, could cause volatility in the bond market and higher rates. He wishes the government would form a real committee of Congress to tackle the problem, noting that the Simpson-Bowl Commission almost reached a deal that would have been a 'home run,' before a dispute between Obama and Paul Ryan over $800 billion (a 10-year figure) derailed it. Dimon says that approach is unlikely, so the first stage would likely be bond market volatility, rising yields and wider credit spreads, with a later bond sell-off possible if investors shun Treasuries over inflation fears. He says he would not rule that out but is not predicting it, adding that JPMorgan is 'completely prepared.'
- Rising bond yields and higher inflation leave the Fed trapped in a rate-hike dilemma
Related markets
Latest news
- Meta Earnings: What To Look For From META
Meta Platforms (NASDAQ:META) will report earnings this Wednesday after the market closes. Last quarter, revenue reached $60.8 billion, up 28% year on year and above analysts' expectations, though revenue guidance for next quarter slightly missed forecasts; daily active users hit 3.6 billion, up 3.4%. The market expects revenue growth of 23.6% this quarter, slowing from 26.2% a year earlier, and analysts have generally reconfirmed their estimates over the past 30 days. Over the last month, consumer internet stocks have gained 1.3% on average, while Meta is down 4.8%.
- An AI bust could come from places investors arent watching , an economist says
Concerns about an AI bubble are growing, and TS Lombard's Dario Perkins warns that investors may be overlooking other risks. Debt among smaller cloud providers, model developers and suppliers could reach $2 trillion by the end of 2027. Perkins does not see this as a systemic risk, but warns that earnings disappointments and canceled orders could ripple through the ecosystem, and that a chip glut could follow over-ordering. Much of the industry's revenue growth still comes from spending within the AI ecosystem rather than from businesses and consumers outside it. He also flags political backlash, noting that ordinary people dislike AI and nearby datacenters, and warns that one high-profile accident could turn AI toxic.
- Yen jumps after JGB auction draws big demand , euro finds relief
The yen rose 0.2% to 158.15 per dollar in Asian trading after a 20-year Japanese government bond auction drew bids of 5.84 times the amount sold, well above the 4.01 times at the previous auction, and the yield fell 6 basis points to 3.71%. A State Street strategist said the record demand suggests sidelined cash is returning and that JGBs are becoming a relative haven from political and fiscal volatility in Europe, particularly France. Anti-government protests in France prompted curfews in several cities, while Italy said it would send 500 troops after two days of unrest, and the euro rallied 0.2% to $1.1234. Elsewhere, bitcoin slipped 0.3% to $81,674.25 and ether edged down 0.2% to $2,393.21.
- Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low
Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.
- CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet
U.S. tech stocks rebounded as the Nasdaq Composite rose more than 1% on Monday, with Nvidia up 1.4% and Tesla up 3.8%. In Asia, however, tech shares fell on Tuesday, with South Korea's Kospi down over 4% and Japan's Nikkei 225 down 1.6%. Nvidia also unveiled plans to back four German AI startups as part of its nearly $10 billion European investment commitment. Jenny Lee of Granite Asia said Asian companies are reaching IPOs much sooner, often at four to five years old, while Jio Platforms' Indian IPO saw its anchor investor quota oversubscribed more than 30 times, aiming to raise up to 302 billion rupees ($3.2 billion). In Singapore, several agricultural stocks fell after Senior Minister K Shanmugam warned that companies would not escape responsibility for possible roles in the haze, noting seven firms had been questioned by the Singapore Exchange.
- NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook
NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.