Europe open: Shares up despite French bond fears, oil prices
By Frank Prenesti
Date: Friday 02 Oct 2026
(Sharecast News) - European shares opened higher on Friday despite a weaker session in Asia overnight, French government bond volatility and reports of a US military buildup in the Gulf which kept oil above $101 a barrel ahead of American jobs data later in the day.
The pan-regional Stoxx 600 was up 0.28% to 628 at 0713 GMT with all major bourses higher.
US government bond yields pushed higher overnight, with the 10-year Treasury yield up 1.6 basis points to 5.243%, having dropped 6 bps overnight to ease from a 24-year high of 5.3445%.
The 30‑year Treasury also gained 1.6 basis points to 5.619%, extending the upward pressure across the long end of the curve as global fixed‑income markets remain under strain.
Oil prices remained elevated on Friday after spiking overnight, with the US reportedly sending more troops and another aircraft carrier to the Middle East. Brent crude was down 0.81% to $101.48 a barrel.
Eyes were also on French bond yields as the country grapples with its budget deficit and high levels of government spending. Debt It now stands at 119% of gross domestic product, leaving strained public finances at the centre of a presidential election next year.
The government is proposing a combine €43bn package of tax rises and spending cuts including capping increases to pensions and civil servant salaries.
"The sharp weakening of appetite for French debt is a big issue for the broader euro area and the euro itself.So, if concerns spread, other heavily indebted members could also face higher borrowing costs, tightening financial conditions across the region," said Swissquote analyst Ipek Ozkardeskaya.
"For the euro, that means weaker growth prospects and a growing risk premium. The EURUSD tanked to 1.1215 yesterday, as the market's focus shifted from the central-bank convergence/divergence story towards the euro area sovereign debt story."
Traders were also eyeing September's non-farm payrolls report with analysts forecasting job growth of 84,000 and a steady unemployment rate of 4.1%.
Reporting by Frank Prenesti for Sharecast.com
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