Rate Cut Hopes Rise, Geopolitical Tensions Mixed, Asian Markets Up

In the US, PMI data that failed to meet expectations has fueled expectations for a potential interest rate cut, with the odds of a cut in September standing at 68%. 

Despite recent tensions like Israel's strike on Iran's consulate in Damascus, geopolitical strains in the Middle East have somewhat eased, putting pressure on gold prices.

In the Eurozone, if PMI figures exceed expectations, the ECB, previously expected to cut rates in June, may take a more cautious approach.

Geopolitical tensions persist in Asia, highlighted by North Korea's launch of a ballistic missile towards the Sea of Japan. Japanese Prime Minister Kishida Fumio has directed preparations for any unexpected developments in the area.

Asian markets responded positively, with Japan's Nikkei advancing by 2.2% and the Hang Seng index climbing around 1.6%. Meanwhile, China's Shanghai index edged up by 0.3%.

Australia's Dollar reached a peak supported by inflation figures that exceeded expectations, rising from 3.4% to 3.5% year-on-year in March, compared to the previous peak on April 12.