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Wall Street shares seen higher after UK rate cut

The UK economy has stumbled since the Brexit vote of June 23 through stock markets have recovered.

Mark Carney
Mark Carney is governor of the Bank of England

Wall Street shares are set for a higher start after the UK Central bank across the pond cut interest rates to 0.25% from 0.5%.

The UK economy has stumbled since the Brexit vote of June 23 through markets have recovered.

Now the Bank of England, led by governor Mark Carney, has cut rates to try and stimulate economic growth as the bank also  slashed its growth prediction for 2017 from 2.3% to 0.8%.

Stimulus measures include the purchase of £60bn of UK government bonds and £10bn of corporate bonds.

It is the first interest rate cut in the UK for seven years.

The FTSE100  index - of leading UK companies- rose over 1.4% or 93 points on the news to stand at 6,727.

Yesterday , in the US, tickers nudged higher by the close, as oil picked up to above $40 per barrel following a sharp decline in reported weekly gasoline inventories.

The S&P 500 index closed  up almost seven points at 2,163, while the Dow Jones Industrial Index added 41 to 18,355 and the tech heavy Nasdaq added 22- to stand at 5,159.

In futures trading, the US is up almost five, the Nasdaq is 22 ahead, while the S&P500 is almost seven ahead at 2,163.

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