Markets Find Relief as Bond Sell-Off Eases, but UK Construction Slumps

Global financial markets steadied on Thursday after a turbulent start to the week, with pressure on government bonds easing and investor focus turning to economic data. Japan provided a key source of calm as its 30-year government bond auction drew solid demand, easing fears after recent surging yields. The outcome, alongside weaker U.S. employment figures, reinforced expectations that the Federal Reserve could move ahead with interest-rate cuts later this month.

In the United Kingdom, however, domestic economic signals remained bleak. The construction sector recorded its longest downturn since the early months of the pandemic. August’s PMI reading ticked up to 45.5 from 44.3, but stayed well below the 50 mark that signals growth. Housing and civil engineering activity contracted sharply, and firms continued to shed jobs amid rising costs, including higher payroll taxes.

Auto sales in Britain also showed strain. Total registrations slipped by 2% year-on-year, though the picture was brighter for electric vehicles. EV purchases jumped 15%, lifting their market share to more than a quarter. Tesla deliveries grew 7% while China’s BYD quadrupled its UK sales, highlighting the competitive momentum of global EV makers.

Overall, Thursday’s market tone suggested partial relief: global bond markets gained stability, but economic data from the UK underlined persistent structural challenges. Investors now look ahead to U.S. labor updates and central bank meetings for the next catalysts.