Global financial markets experienced a mixed yet cautiously optimistic response on Thursday following the U.S. Federal Reserve’s first interest rate cut of the year. The pan-European STOXX 600 index and Wall Street futures both rose by 0.5%, reflecting a steady sentiment despite initial volatility. Meanwhile, Asian markets, particularly in China, South Korea, Taiwan, and Japan, rallied overnight, with Chinese stocks reaching a 10-year high amid reports of U.S. chipmaker Nvidia being banned in China. The dollar edged 0.2% higher after hitting a 3.5-year low earlier in the week, providing some relief to non-U.S. exporters. Fed Chair Jerome Powell tempered expectations by emphasizing a measured approach to future rate cuts, with the ‘dot plot’ signaling two more reductions in 2025 and one in 2026. In Europe, the euro remained stable at $1.1825, while the pound held steady at $1.36 ahead of the Bank of England’s rate decision. Analysts anticipate the BoE may slow its bond reduction pace due to recent market volatility. French bond yields surpassed Italy’s, highlighting ongoing political uncertainties. Commodity markets saw Brent crude dip 0.2% to $67.87 per barrel, while gold rose 0.2% to $3,665 per ounce. The Norwegian crown softened slightly after a 25 basis point rate cut, and the Australian dollar slipped 0.4% following weaker-than-expected labor market data. Bond markets rallied, with U.S. 10-year Treasury yields dropping to 4.06%.