---
title: "FTSE 100 Set to Fall 0.4% as High Bond Yields Offset Softer US Inflation"
publisher: "Share Talk"
author: "sharetalk"
published: "2026-10-01T06:31:06+00:00"
modified: "2026-10-01T06:31:06+00:00"
date: 2026-10-01
canonical: "https://www.share-talk.com/ftse-100-set-to-fall-0-4-as-high-bond-yields-offset-softer-us-inflation/"
category: "Blogs"
categories: ["Blogs", "Technology", "Technology, Media & Telecoms"]
tags: ["Asia", "Bangkok", "Denmark", "Endeavour Mining", "Fed", "Federal Reserve", "Finland", "FRANCE", "FTSE 100", "GERMANY", "Glencore", "Greenland plan", "Hong kong", "Japan", "London", "Manila", "mining stocks", "Mumbai", "Nasdaq Composite", "NATO alliance", "Netherlands", "Nikkei 225", "Norway", "S&P 500", "shanghai", "Singapore", "Sweden", "Sydney", "Taiwan", "UK", "United States", "Wall Street"]
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language: "en-GB"
---

# FTSE 100 Set to Fall 0.4% as High Bond Yields Offset Softer US Inflation

**Published:** October 1, 2026
**Author:** sharetalk
**Categories:** Blogs, Technology, Technology, Media & Telecoms
**Tags:** Asia, Bangkok, Denmark, Endeavour Mining, Fed, Federal Reserve, Finland, FRANCE, FTSE 100, GERMANY, Glencore, Greenland plan, Hong kong, Japan, London, Manila, mining stocks, Mumbai, Nasdaq Composite, NATO alliance, Netherlands, Nikkei 225, Norway, S&P 500, shanghai, Singapore, Sweden, Sydney, Taiwan, UK, United States, Wall Street
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---

**FTSE 100 futures indicated an opening around 45 points, or 0.4%, lower at 10,561.40 on Thursday**, extending Wednesday’s 0.3% decline.

The softer tone comes despite US inflation data reducing expectations for another immediate Federal Reserve rate increase.

US core PCE inflation rose **0.2% month-on-month and 3.0% year-on-year in August**, below market expectations, helping reduce the implied probability of an October Fed increase to around 38%.

That relief was insufficient to reverse pressure from longer-dated bonds. The **US 10-year Treasury yield reached 5.306%**, its highest since June 2007, after one of the sharpest quarterly bond-market sell-offs in decades.

Wall Street ultimately gave back much of its earlier advance on Wednesday. The **Dow fell 0.9% and the S&P 500 lost 0.3%, while the Nasdaq gained 0.2%**, supported by technology shares.

Asian markets were mixed. Japan’s **Nikkei 225 jumped more than 3%**, driven by semiconductor stocks after strong results from US memory-chip maker Micron, while Australian equities fell sharply and mainland Chinese markets remained closed for a holiday.

Oil prices provided another major change in the market backdrop. **Brent crude fell around 1.4% to $96.64 a barrel**, as recovering Gulf exports, higher US inventories and reduced immediate supply fears pushed prices lower.

For the FTSE 100, cheaper crude has a mixed impact. It reduces inflation pressure and benefits fuel-intensive businesses, but could weigh on **BP and Shell**, whose large index weight means weakness in energy can drag on the wider benchmark.

Gold remained supported at around **$4,200 an ounce**, while sterling eased to approximately $1.325 against the dollar.

Thursday’s UK focus turns to **September manufacturing PMI data**, alongside Nationwide house-price figures, while US initial jobless claims will provide another indication of labour-market strength.

For investors, the key tension is that **short-term Fed expectations are easing but long-term yields remain stubbornly high**. Until Treasury yields begin falling materially, softer inflation alone may not be enough to deliver a sustained equity-market rebound.

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