SOME people just have no gratitude. The Chancellor's present to the stock market yesterday - in the form of a quarter point cut in base rates, to 6 per cent appeared to get a raspberry from investors.

The reduction had been widely expected, so the market could be forgiven for not rising. But the real reason for the plunge was the turbulence on Wall Street.

Reductions in US interest rates have played an important part in fuelling the recent international bull market in shares which has carried the Footsie to all time highs. So any suggestion that economic strength might stop the Fed from cutting rates further, or even lead it to raise them, is seen as bad news for investors.

The market might also be indicating that it takes a more robust view of the British economy than many experts. While Footsie has struggled and failed to top its all time closing high, the Mid 250 index has repeatedly scaled new peaks.

Small companies are more exposed to the British economy than Footsie constituents, which often have international interests, so the shift suggests investors are expecting a consumer led rebound. If that does happen, the chancellor would have less justification for cutting rates again.