FTSE 100 reaction to BOE rate cut was clear to see

The FTSE 100 was again the outlier amongst the major European stock market indexes. This time not in a good way. The contrast between the closing levels for the FTSE and the DAX was probably as stark as you would ever see. The DAX gained 1.7% whilst the FTSE 100 lost 0.32%. The index ended the session 25.94 points lower, at 8,140.74, in what was a clear rebuttal to the Bank of England rate cut earlier in the day. An update here yesterday ahead of that rate cut stated the FTSE 100 needed more that one cut from the BOE. Well, you can see that observation was certainly on the money, when you look at how the index reacted by the close. Of course the BOE is covering its bases and refusing to offer the markets the prospect of deeper and faster rate cuts over the next few months and that lies at the core of the FTSE reaction yesterday. That said, the FTSE 100 futures are pricing a slightly higher opening shortly this morning, at around 8,170. However, we shall have to see, if that translates into lasting gains as the morning unfolds and not a further lurch to the downside