by Martin Armstrong
A bounce late in the US saw overnight gains for the Nikkei (1%+) with the Hang Seng and Shanghai. All pretty much well behaved for thin summer trading and it was we were looking forward to both the Bank of England and tomorrow Non-Farms report. Many dealers pointed to the turnaround for the price of oil but given we have seen a weakening in prices for a while this could also be just a relief rally.
We had to wait for confirmation of what everyone was taking as a done deal from the Old Lady but that was soon to materialise at lunchtime. At noon the UK base was cut by 25bp to the record low 0.25% as the market had priced.