The FTSE 100 is poised for a rebound, with the pound holding below $1.34, according to Bloomberg. This follows a stabilization in the global bond selloff, which had pushed yields to multi-decade highs. The easing of the bond market tension was partly attributed to a drop in oil prices, offering investors some relief after a challenging period for debt markets.
The 10-year Treasury yield decreased by one basis point to 5.19%, after having jumped more than 20 basis points in the preceding two sessions. Similarly, the rate-sensitive two-year yield saw a decline of two basis points to 4.91%. Gold prices remained around $4,270 per ounce, and the dollar steadied after five consecutive days of gains.
Providing further support to market sentiment, Brent crude oil fell by 0.9% to approximately $105.60 a barrel. This drop followed a surge of over 7% in the previous two sessions. News of US and Iranian negotiators exploring a phased deal that could see Tehran reopen the Strait of Hormuz and Washington lift its blockade of Iranian ports contributed to the decline in oil prices. As sentiment stabilized, stocks rose, and US equity-index futures pared earlier losses. MSCI's Asia Pacific equities gauge climbed 0.3%, with Japan leading the gains. Futures indicated a positive open for European markets.
