FTSE 100 LIVE: London shares kick on after benign US jobs report

London stocks kicked on after Wall Street opened and now sits 60 points higher on the day.

A softer-than-expected US jobs report did the heavy lifting. The US economy added just 29,000 roles in September, well short of the 90,000 economists had pencilled in.

Unemployment edged up to 4.2% from 4.1%. That was enough to cool talk of a Federal Reserve rate rise in October, with traders now seeing a 16% chance against 64% a week ago.

Treasury yields eased, with the 10-year slipping to 5.18% and the 30-year to 5.57%.

Fed officials have argued in recent days that the central bank has time to assess inflation before moving.

Brent crude, the global benchmark, dipped to $99 a barrel.

On Wall Street, the Dow Jones rose 0.7%, the S&P 500 gained 0.9% and the Nasdaq Composite climbed 1.3%.

The FTSE 100 has slipped from its session high but remains 23 points to the good.

Across the Atlantic, US stock futures are pointing higher ahead of September's non-farm payrolls report.

Dow Jones and S&P 500 futures are up 0.3%, with the Nasdaq-100 ahead 0.6%.

Economists expect 85,000 new jobs, a more normal pace after August's blowout.

It would take a big surprise to shift bets on a Federal Reserve rate rise, with most traders still pencilling in a quarter-point increase in December.

The Middle East war, now in its eighth month, keeps inflation stubborn and Brent crude parked around $102 a barrel.

Low hire, low fire, and no hurry from the Fed.

So, after an initial burst, we are almost back to parity as attention now turns to Friday's US jobs figures. A stronger-than-expected print could push the Federal Reserve towards further rate rises to stop the economy overheating.

Stocks are clawing back a little ground this morning, but don't be fooled: European markets are still on course for their worst week since April.

The FTSE 100, DAX and CAC each rose about 0.25% early on as bargain hunters picked through the wreckage.

And there was plenty of wreckage.

The FTSE 100 fell about 1.7% on Thursday, its worst session since May, slipping below 10,500 and testing its 200-day moving average, a closely watched gauge of the longer-term trend.

Banks took the heaviest hits as 30-year gilt yields touched 6%.

The real action is in bonds, which are firmly in the driving seat.

The US 10-year Treasury yield hit a cycle high of 5.34% on Thursday before easing back below 5.25%, the level where things start to break.

France is the other pressure point.

Its 10-year yield hit 4.96%, the highest since 2002, before a €43 billion package of tax rises and spending cuts briefly calmed nerves.

It's back at 4.92% now, and the gap over German borrowing costs has widened to about 140 basis points.

Oil sits above $101 a barrel and the dollar is at a 17-month high.

Next up, US non-farm payrolls, forecast at 90,000 jobs, so buckle up.

The FTSE 100 crept into the green in the first few minutes of trading after a volatile session on Thursday, though the bond market's travails are still in traders' peripheral vision. The day's biggest faller was IG Group, which sounded the alarm after a slowdown in trading. The stock dropped 25%in early trade.

The FTSE 100 is set to open around 33 points higher, clawing back a sliver of Thursday's 1.7% drubbing.

Don't get too excited. Asia had a rough night, with Hong Kong down 2.6% and Tokyo 0.9% lower.

Brent crude is back at $102.50 a barrel, with Washington and Tehran deadlocked and the Strait of Hormuz still closed.

Reports that the US is sending more warships, jets and troops to the region haven't helped.

Bond yields have eased slightly after Thursday's spike, giving investors a moment to catch their breath.

All eyes now turn to the US jobs report this afternoon. A strong number would revive bets on another Federal Reserve rate rise on 28 October.

Dallas Fed boss Lorie Logan already reckons rates need to rise by at least another 50 basis points.