Markets Rebound on Softening Rate Hike Expectations and Lower Oil Prices

Global markets showed signs of improvement on Friday as crude oil prices dipped and bond yields eased. The Federal Reserve's rate hike expectations also softened, supporting market sentiment.

The CME FedWatch tool reported that expectations for a quarter percentage point rate hike by the Fed in October have declined to 69%, down from above 75% a day earlier.

Wall Street Futures gained more than a quarter percent, while major European benchmarks traded higher. Asian markets closed on a mixed note earlier in the day.

The six-currency Dollar Index slipped as the Japanese yen rebounded. Crude oil prices, however, declined by over 1% due to reports of a potential deal between the US and Iran to reopen the Strait of Hormuz.