Global shares rise as bond selloff eases before US jobs

Key Points:

• Global shares rose on Friday as volatility in bond and currency markets eased ahead of key US jobs data that could influence the Federal Reserve's next policy decision.
• European sovereign bonds saw price increases, with German 10-year yields falling 6.5 basis points, while yields in more indebted countries like France and Italy lagged, widening the yield gap to levels not seen since the 2012 euro zone debt crisis.
• Rising energy prices due to the US-Israeli war with Iran have fueled a bond market selloff, pushing Japan's long-term bond yields to multi-decade highs and US 10-year Treasury yields to a 24-year peak.
• The US September nonfarm payrolls report is forecasted to show a gain of 90,000 jobs with a steady 4.1% unemployment rate, which could affect expectations for additional Federal Reserve rate hikes.
• Safe-haven assets like US Treasuries, the dollar, and Swiss franc strengthened amid European bond market concerns, while oil prices declined due to signs of recovering Middle East supplies and potential EU diesel stockpile releases.