Market sentiment showed a slight improvement following a recent interest rate cut by the People's Bank of China, aimed at stimulating economic activity.

Despite this positive sentiment in China, ongoing geopolitical uncertainties in the Middle East and Europe, along with the upcoming U.S. presidential election, are contributing to market volatility.

As a result, U.S. stock benchmarks have retreated from record highs, influenced by rising Treasury yields and the approaching earnings season.

The 10-year Treasury yield has remained steady at 4.20%, significantly impacting stock prices and contributing to a slowdown in market momentum.

In the U.S., better-than-expected earnings are being positively received, contrasting with Europe, where earnings misses are leading to significant declines in share prices.

In Europe, Eurofins saw an 8% decline after reporting nine-month growth that fell below company guidance, placing it at the bottom of the STOXX 600.

Meanwhile, Japanese shares have declined due to uncertainty regarding the Bank of Japan's ability to raise interest rates further.

In energy markets, oil prices have fallen slightly, with U.S. crude prices at $71.64 per barrel and Brent crude at $75.95 per barrel, influenced by rising U.S. crude inventories.

Despite the mixed performances, the S&P 500 has achieved its longest winning streak of 2024, closing its sixth consecutive week of gains.

Broader Asian markets have largely remained within a tight range, with South Korea's Kospi rising by 1.3% while Japan's Nikkei 225 index fell by 0.3%.

Traders are also booking profits after recent market upsurges, reflecting caution amid the prevailing uncertainties.

Analysts are advising to monitor potential briefings from government ministries regarding new stimulus measures, which remain a key topic for markets.