Global equities edged higher on Friday as investors grew more confident that major central banks could begin lowering borrowing costs later this year. The advance was modest, but it reflected a broader shift in market mood as traders adjusted to the possibility of easier monetary policy ahead.

The gains came as bond yields and interest-rate expectations remained in focus, with market participants weighing whether cooling inflation and slower growth could give policymakers room to move. Even small changes in rate expectations can ripple through stocks, currencies, and government debt, making central bank guidance a key driver of trading.

The latest session added to a pattern seen in recent weeks: investors appear more willing to take on risk when they believe financing conditions may soon improve. That optimism has supported equities across several major markets, though sentiment remains sensitive to new economic data and signals from policymakers.

For now, the market tone is constructive, but not exuberant. Traders are still looking for confirmation that inflation is easing enough to justify cuts, while avoiding any fresh surprises that could push borrowing costs higher for longer.