London Stocks: FTSE 100 and FTSE 250 Daily — 2026-10-05
The FTSE 100 recovered to 10,505 on Friday (4 October), rising 0.4% as miners led gains following weak U.S. jobs data that cooled Federal Reserve rate-hike expectations. The rebound came after the index suffered its worst week since April, with the 30-year gilt yield reaching 6% earlier in the week—a 28-year peak that triggered a 1.68% plunge on 1 October.
London Stocks: FTSE 100 and FTSE 250 Daily — 2026-10-05
Top developments
FTSE 100 Recovers on Softer U.S. Jobs Data and Mining Strength
The FTSE 100 climbed 0.4% to 10,505 on Friday (4 October 2026), supported by mining shares and weaker-than-expected U.S. employment figures that reduced bets on a U.S. Federal Reserve rate hike. This marked a partial recovery from the index's worst week since April, though the broader context remains one of gilt yield volatility and rate hike uncertainty for the Bank of England. Trading volumes remained active, with metals lifting mining-heavy constituents.
Gilt Yields Spike to 28-Year Peak, Triggering Sharp Index Selloff
On 1 October 2026, the FTSE 100 plunged 1.68% to 10,428.27—its worst day since May—as the 30-year gilt yield broke through 6% for the first time since 1998. The FTSE 250 similarly declined 1.6% to 24,143.21, signaling broad-based weakness across both blue-chip and domestically-oriented mid-cap names. Gilt yield surges typically pressure equity valuations, particularly for interest-rate-sensitive sectors including banks and utilities.
Bank Rate Hold at 3.75%; November Rate Hike Priced at ~95%
The Bank of England maintained its bank rate at 3.75% in September 2026, holding steady as expected. Market pricing now reflects a nearly 95% probability of a rate hike at the November meeting, putting pressure on gilt yields and equity sentiment heading into Q4. Sterling has remained sensitive to BoE guidance, while fund managers in London monitor inflation persistence and bond market stability.
Week of Decline Follows Late-September Oil and Bond Volatility
The week ending 4 October saw the FTSE 100 retreat from gains, pressured by climbing oil prices and rising gilt yields that stoked inflation concerns. Earlier in the week, stronger-than-expected U.S. inflation data had sparked a global bond selloff, though Friday's payroll disappointment (U.S. jobs at only 29,000) eased some of that pressure. Banks faced headwinds from higher bond yields, while energy majors like BP and Shell were weighed down by oil volatility below and around the $100-per-barrel mark.
Local view
German financial media reported on the FTSE's volatility, with finanzen.net noting on 2 October that confidence had returned to London with the FTSE 100 ending higher after days of declines. Chinese-language coverage via Investing.com highlighted the interplay between weak U.S. jobs and metal price strength, noting that traders had priced in lower Fed rate-hike probabilities, benefiting commodities and mining names.
Context & numbers
- FTSE 100 range (1–4 Oct 2026): 10,428.27 (low on 1 Oct) to 10,910.55 (52-week high vicinity); closed Friday at ~10,505 (+0.4%).
- FTSE 250 close (1 Oct 2026): 24,143.21, down 1.6%.
- 30-year UK gilt yield: Reached 6.0% on 1 October (28-year peak); moderated Friday as bond volatility eased.
- Sterling: Slipped modestly versus the euro amid broader dollar strength driven by U.S. monetary policy repricing.
- Sector leaders: Mining stocks (Glencore, Rio Tinto constituents) outperformed; housebuilders rallied in pockets; oil majors under pressure from crude volatility.
- Weekly performance: FTSE 100 down ~2% for the week ending 4 October—worst week since April 2026.
On the radar
- Bank of England November MPC decision (20 November 2026): Market now pricing ~95% probability of a 25 bp rate hike; gilt market positioning critical ahead of that decision.
- U.S. Fed messaging: Softer October jobs data may continue to ease rate-hike expectations, supporting risk assets including UK equities if trend holds.
- Oil price direction: Brent crude trading near $100 per barrel; any further downside could ease gilt yields and benefit equity valuations; upside spike would risk another bond selloff.
- Gilt auction calendar: UK DMO issuance ongoing; large supply combined with rising real yields may continue to test investor appetite and fund flows.
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