"Global Markets React to Rate Cut Rethink and Lingering Inflation Concerns"

Global markets are reacting to a shift in expectations for Federal Reserve interest rate cuts, with traders now anticipating fewer cuts than previously expected. This change has implications for central banks worldwide, with the Reserve Bank of Australia now expected to make only one rate cut instead of two. The higher U.S. rates outlook may also limit easing from central banks in emerging markets. Meanwhile, Japanese stocks are approaching their 1989 peak, and Indonesians are voting for the country's next leader. Key market-influencing events today include UK inflation figures and Euro zone GDP flash estimates.