Global equity markets trade with a cautious tone as investors weigh shifting central bank expectations against easing political tensions. In Asia, Japanese equities remain volatile after the Bank of Japan raised its inflation outlook, reinforcing expectations for potential rate hikes later this year and keeping the yen relatively supported. U.S. markets are showing mixed signals, with Dow and S&P 500 futures stabilizing while technology-heavy Nasdaq futures face pressure from renewed concerns around the semiconductor supply chain and earnings visibility.

In Europe, sentiment has improved following a de-escalation in recent trade and geopolitical rhetoric, supporting a rebound in DAX and broader regional indices. Currency markets remain in focus, with the dollar struggling to regain momentum as investors reassess the attractiveness of U.S. assets, while gold prices stay elevated despite a partial pullback. Looking ahead, markets will closely monitor macro data releases, central bank commentary and developments in the tech sector, all of which are likely to drive short-term moves across global equity indices.