Global equity markets opened the week with modest gains as investors welcomed a pause in the recent rise in bond yields and grew more confident that the U.S. Federal Reserve could lower interest rates later this year.

Shares in Europe and Asia moved higher in early trading, reflecting improved risk appetite after lower U.S. Treasury yields helped ease pressure on markets. The shift offered some relief to investors who have been watching borrowing costs closely as they assess the outlook for corporate profits and economic growth.

The moves remained measured rather than broad-based, suggesting traders are still balancing optimism about monetary policy with caution about inflation, growth risks, and the pace of central bank action. Even so, the latest session showed how quickly sentiment can improve when yields stabilize.

Market participants will now be watching upcoming U.S. economic data and Federal Reserve signals for confirmation of whether rate cuts are likely to arrive later in the year. For now, the combination of steadier yields and softer policy expectations is giving global stocks a mild lift.