UK stocks climb as bond yields ease and US jobs data looms

London’s main index closed up 75 points, supported by a dip in US 10-year Treasury yields to 4.75% and a modest fall in UK gilt yields. A S&P Global UK services PMI rose to 52.5, the highest since April, signalling expanding activity. US service-sector surveys also showed acceleration, raising expectations for a solid non-farm payrolls release. Analysts such as Russ Mould and Rob Wood linked the market steadiness to calmer bond markets and modest oil-price moderation.

On Thursday the FTSE 100 ended the session 0.7% higher at 10,831.52, buoyed by a retreat in US Treasury yields—4.75% on the 10-year and 5.23% on the 30-year—and a slight easing of UK gilt yields. UK services activity accelerated to a 52.5 PMI, the fastest growth in four months, while the composite PMI also rose to 52.5, both above the 50-point growth threshold. Across the Atlantic, US service-sector PMIs posted their strongest readings in 20 months, reinforcing optimism ahead of Friday’s non-farm payrolls, which could influence a potential Fed rate hike.

Market participants such as AJ Bell’s Russ Mould cited calmer bond markets and lower oil prices for the rally, and Pantheon Macroeconomics’ Rob Wood noted that GDP growth may outpace PMI signals. Individual stocks moved sharply, with Prudential up 3.5% after a new buy rating, and Hilton Food jumping 12% on upgraded profit guidance. Gold prices rose, supporting miners like Endeavour Mining and Fresnillo.