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UK rate cut forecasts storm clouds—US stocks to benefit, market watcher says

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BOE cuts rates, expands government bond purchases

The Bank of England's first interest rate cut in seven years to combat any economic slowdown from Brexit points to a real slowdown in Europe, JMP Securities President Mark Lehmann told CNBC on Thursday.

"A lot of these moves are pointing to a slowdown in Europe and a colossal change of what we're expect over there," Lehmann said on "Squawk Box."

"I think it's going to point you back to the [United States] ... for the fourth quarter," he predicted, saying he also expects a "very good 2017" for U.S. stocks and the market for initial public offerings.

An increase of nearly $80 billion in the Bank of England's government bond-buying program, known as quantitative easing, to $573 billion was also announced Thursday.

The BOE also reduced 2017 growth expectations, citing "substantial uncertainty," after the U.K. voted to leave the European Union in June's referendum.