FTSE 100 Live: Stocks set to rise as markets digest Bessent buyback

As the City AM liveblog resumes, the FTSE 100 appears poised for an upward trend following new research indicating a surge in consumer confidence to its highest level in nearly two years. The GfK consumer confidence index, which assesses household opinions on personal finances and economic outlook, surged three points in August to minus 14, marking the highest score since August 2024, following the Labour party's victory in the general election.

However, not all sectors are immune to market fluctuations. JD Sports experienced a substantial decline of up to 14 percent on Thursday after the company revised its profit expectations for the remainder of the year, casting a shadow over London's blue-chip index. Nevertheless, miners and energy corporations helped stabilize the index.

The FTSE 100 concluded the day 4.8 points higher, while the FTSE 250 experienced a decline of 134.9 points. In the United States, investors continue to monitor the implications of Scott Bessent's decision to double a buyback program for U.S. longer-dated bonds. Treasury Secretary announced on Wednesday plans to increase borrowing to purchase $4 billion worth of 30-year Treasuries, twice the amount of the previous quarter.

Initially, this move led to a 10 basis point decrease in 30-year Treasury yields. However, throughout Thursday, these yields rebounded, surging by as much as eight basis points even as Bessent hinted at further interventions.

Bessent told CNBC, "We're going to increase the size of the buyback," adding that the program could extend beyond the initially announced $4 billion. Analyst Neil Wilson of Saxo UK cautioned that the increased buyback doesn't address the core issues behind the recent rise in yields. Gold prices have also risen significantly since Bessent's announcement, driven by concerns that the move might be a precursor to more extensive bond market interventions. The precious metal reached $4,543 per ounce, its highest level since early June.

Meanwhile, the US dollar declined to its lowest level against major currencies since April, reflecting the ongoing market uncertainty. The liveblog will continue to provide the latest market updates and analysis.