Bank of England cuts interest rates

In widely-anticipated move, the Bank of England cut interest rates by 25 basis points yesterday. Its Monetary Policy Committee cited slowed household spending and business investment growth and continuing downside risks as reasons.

The European Central Bank, on the other hand, left interest rates unchanged, again as widely expected. A 2.4 percent rise in German factory orders for June provides further evidence of an improving economy for the euro zone.

The news from the US was mixed yesterday. In a sign of an improving US job market, the Labor Department reported that initial claims for unemployment benefits fell by 1,000 to 312,000 last week while the four-week moving average fell to 316,750 from 319,000 the previous week. On the other hand, July sales at US retailers were disappointing, with same-store sales rising only 3.7 percent from a year earlier -- a drop from 5.4 percent in June -- according to Retail Metrics.