Bond yield whiplash grips global economy

Hello, this is Leonie Kidd coming to you from London. Welcome to another edition of CNBC’s Daily Open.

A disorderly bond market makes officials and policymakers nervous.

And now Europe has caught America’s cold when it comes to spiking yields.

As CNBC’s Steve Sedgwick reminded us in the newsroom, the European Central Bank has a tool to stop disorderly bond sell-offs and spread widening. We could all be dusting off our knowledge of the Transmission Protection Instrument (or TPI) — the ECB’s anti-fragmentation tool — sooner than we think.

Read on for more.

In the U.S., the 10-year Treasury yield has posted its largest quarterly rise in a century during the third quarter, hitting levels not seen since 2002. The 30-year yield is at a 24-year high.

The jitters are spreading across global bond markets as well. In the U.K., long-dated gilt yields hit their highest levels since 1998, while the spread between France and German yields reached its widest level in 14 years.

The moves are sparking concern on both sides of the Atlantic, while stock markets continue to watch uneasily.

On Friday, futures are ticking higher ahead of the September jobs report.

Dow Jones consensus estimates point to a 84,000 growth in jobs during the month, while the unemployment rate is expected to hold steady at 4.1%.

For what to expect, read on here.

Oil prices have stabilized in early trade on Friday after spiking during Thursday’s session.

U.S. officials told the Wall Street Journal that an additional aircraft carrier was due to arrive in the Middle East by the end of November. The deployment could suggest the U.S. is preparing to escalate tensions with Iran.

Voters in Brazil will head to the polls on Sunday for the first round of the closely watched presidential election. Incumbent Luiz Inácio Lula da Silva and rival Sen. Flávio Bolsonaro are dominating the polls. If neither secures more than 50% of the vote alongside 12 other candidates, there will be a runoff on Oct. 25.

— Leonie Kidd

Jewelry giant Pandora is betting on lab-grown diamonds and a new Vietnam plant

Danish jewelry giant Pandora has opened its $150 million manufacturing facility in Vietnam, betting on further growth in Asia as the company diversifies production beyond its longtime base in Thailand.

The move underscores Pandora’s growing ambitions in Asia, where the company sees significant room for further expansion.

“We are clearly building the capacity today for the growth of tomorrow that we expect,” President and CEO Berta de Pablos-Barbier told CNBC’s “Squawk Box Asia” on Friday, adding that Asia remains a “very positive region” for Pandora after growing at 10% in the second quarter.

— Jenny Lee