The UK's main stock market indices ended higher on Thursday. The FTSE 100, which tracks the 100 largest companies on the London Stock Exchange, rose 0.7% to 10,831.52, while the FTSE 250, which includes mid-sized firms, climbed 0.7% to 24,496.13. The AIM all-share index, which focuses on smaller, high-growth companies, gained 1.2% to 799.81. Investors appeared more confident due to calmer government bond markets and a slight drop in oil prices. Russ Mould, an investment director at AJ Bell, noted that yields on US and UK government bonds had fallen slightly, which can reduce borrowing costs and ease market pressures. In the UK, economic data showed that the services sector grew at its fastest rate in four months in August, though the final figure was lower than an initial estimate. The S&P Global UK services purchasing managers’ index (PMI) rose to 52.5, up from 52.1 in July, but still below the earlier forecast of 52.8. This figure indicates expansion, as readings above 50 suggest growth. However, export sales continued to decline for the sixth month in a row due to weak European demand and global uncertainty. Similar trends were seen in the broader UK composite PMI, which also rose to 52.5, its highest since April. In contrast, the UK manufacturing sector faced a slight slowdown, with the PMI for manufacturing dropping to a five-month low of 51.7 in August. Despite this, the figure was still above the initial estimate and suggests modest growth. Rob Wood, an economist at Pantheon Macroeconomics, said the data supports a GDP growth rate of 0.2% in the third quarter, slightly lower than the previous quarter but still above the Bank of England’s expectations. Meanwhile, global oil prices rose slightly, with Brent crude for November delivery up to $96.83 per barrel. European stock markets also saw gains, with the Cac 40 in Paris and the Dax 40 in Frankfurt both rising. In the US, major indices like the Dow Jones, S&P 500, and Nasdaq all climbed as reports showed strong growth in the US services sector. The focus now shifts to the upcoming US nonfarm payrolls report, which could influence decisions about interest rate hikes by the Federal Reserve.