NEW YORK/LONDON, Aug 1 - Global equities broadly gained on Thursday as treasury yields slid after 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 quarter-point in a narrow 5-4 vote. Oil futures rose on the risk of a broadening Middle East conflict.
"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. Emerging market stocks , rose 5.33 points, or 0.49%, to 1,090.10. MSCI's broadest index of Asia-Pacific shares outside Japan , closed 0.54% higher at 568.59.
"The statement was notable in that they removed the tightening bias and replaced it with a more neutral bias," said Jan von Gerich, chief analyst at Nordea.