<h1>Global stocks rally on expected U.S. rate cut; tariffs, Chinese bank directive raise legal and liability risks</h1> Global equity gains reflect market anticipation of an imminent U.S. central bank interest-rate cut, driven by mixed economic data and easing Treasury yields, prompting rallies in rate-sensitive sectors and higher risk asset valuations. Concerns remain that tariffs imposed by the U.S. president could exacerbate inflation, complicating monetary policy. A reported directive for state banks to address unpaid local government bills in China raises legal and contingent-liability issues for banks and local governments and may prompt regulatory scrutiny. Movements in currency, oil and bond markets underscore cross-border financial and regulatory implications of the policy shifts.