US Close 5 Aug 16: UK rate cut spurred European markets and lifted the Aussie dollar.

The Bank of England announced a broad easing package.  It included lowering its bank rate by 25bps to 0.25% as well as sovereign and corporate asset purchases.  The decision on interest rates was unanimous (i.e. 9‑0). The majority of the Moentary Policy Committee (MPC) sees another, albeit smaller, interest rate cut later this year. We are looking for a move in November, and more asset purchases to be unveiled in 2017.

US sharemarkets were mostly flat on Thursday as investors waited on the crucial employment data released on Friday. The largest US life insurer, Metlife fell more than 9%, and was the biggest drag on the S&P 500 after missing quarterly profit estimates.

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