The dollar eased 0.2%, while gold rose 0.3%|Kaptan Ravi Thakkar|CC BY-SA 4.0

European stocks climbed for a second day as expectations of US Federal Reserve rate cuts fueled optimism across global markets.

The Stoxx 600 gained 0.4%, while Asia’s MSCI index jumped 1.4% to its highest since February 2021. US futures traded steady after Wall Street’s record highs.

US 10-year Treasury yields slipped to 4.26% as investors bet on a September rate cut, with swaps pricing a 90% chance of a quarter-point move and more to follow. 

The dollar eased 0.2%, while gold rose 0.3%.

Corporate highlights included Advent International’s $2.5 billion deal for Sapiens International and Vestas maintaining earnings guidance. 

Global optimism is also supported by easing trade tensions and stronger-than-expected US earnings, bolstering confidence in continued market gains.