FTSE 100 today: Stocks rebound modestly after gilt rout; U.S. jobs data in focus

On Friday, British stocks recovered modestly as investors cautiously returned to the market following a bond-led sell-off on Thursday. However, gains were tempered by geopolitical tensions surrounding Iran and the looming U.S. jobs data. The FTSE 100 gained 0.10%, DAX rose 0.30%, and CAC 40 increased 0.29%. The British pound strengthened by 0.09% to $1.3213.

Tensions between the U.S. and Iran escalated, with Washington bolstering its military presence in the region. Three aircraft carriers and two amphibious groups were deployed, with the full buildup planned by November according to a U.S. official. A 2.5-million-barrel supertanker caught fire in the Strait of Hormuz, though the cause remained unknown.

U.S. envoy Mike Waltz informed the UN Security Council that Iran had enriched uranium to 60%, a level with no recognized civilian application. Treasury Secretary Scott Bessent stated that Iran had not loaded any crude oil onto tankers in September.

President Donald Trump vowed to negotiate a "very fair deal" with Iran, warning that failure to comply would result in Iran's downfall. He also suggested renewed strikes against Iran following the November midterm elections, potentially contradicting his earlier claim that action could come soon.

Iranian President Masoud Pezeshkian emphasized Tehran's willingness to engage in dialogue, according to Tasnim news agency. Economists and traders are closely monitoring the upcoming U.S. September payrolls report, with expectations of 89K new jobs versus 162K in the prior month. Unemployment is projected at 4.1%, and hourly earnings are expected to rise by 0.3% month-over-month.