LONDON, Aug 1 Reuters Major European equity markets were lower on Thursday after a raft of corporate earnings in the U.S. and Europe, while a rate cut in the UK and prospects of upcoming policy easing in the United States boosted global bonds.

The Federal Reserve held interest rates steady on Wednesday but opened the door to a cut in September. The Bank of England stole a march on the Fed on Thursday by lowering borrowing costs by a quarterpoint in a narrow 54 vote.

Major European markets were mostly lower with the panEuropean STOXX 600 down 0.3, and Germany39;s DAX and France39;s CAC 40 both nursing losses of over 0.9.

The fact that some heavyweights are cutting guidance does not bode well going forward and might well explain why European markets are underperforming, said Stephane Ekolo, equity strategist at TFS Derivatives.

Disappointing set of results, slowing growth for industrials, Chinese consumers no longer there to rescue demand and a possible resurgence of inflation. You have a not so pleasant cocktail.

Britain39;s FTSE 100 bucked the trend, benefitting from a weaker pound after the BoE39;s rate cut. The more domesticorientated FTSE 250 rose 0.7 to its highest since Feb. 2022.

If you look at the headlines that Bailey produced caution on cutting too quickly or by too much, it implies to me that they39;re looking at a steady quarterly pace of reductions, said Colin Asher, economist at Mizuho.

I would say that makes a cut in the next meeting in September…