UK 100 called to open higher by around 100 points as Asian stocks and metals rose as Federal Reserve Chairman Bernanke said the US will continue to need economic stimulus. In Asia, markets were also helped by the BoJ keeping its bond-buying program unchanged leading to Yen climbing versus the dollar.

Overnight in Asia more than 2 stocks rose for every one that fell on the MSCi’s Asian gauge, being teed up for its highest close since 4th June. Shares in Hong Kong, South Korea and Taiwan jumped more than 1.9% while Australian equities rose 0.8%.

The Shanghai Composite extended yesterday’s gain (biggest 2-day gain in 6 months) by another 2.2% as speculation that the government will take measures to boost economic growth as data showed yesterday that imports and exports declined unexpectedly in June.

The BoJ kept its 2015 core inflation target of 1.9%. We also saw Australia’s unemployment rate increase, its highest level since 2009, showing the challenge new PM Rudd faces. Jobless data rose to 5.7% last month. Other overnight data showed that Japanese Machine orders increased MoM.

In US markets Fed Chairman Ben Bernanke’s comments last night have changed everything this morning – for the better. The UK Index will be quick out of the blocks today – do not hesitate in acting this morning.

The Dow Jones futures are trading 180pts higher after the market closed down just 8pts before Bernanke spoke after the closing bell.

The Fed Chairman confirmed inflation and job numbers are among the factors in retaining stimulus – for now. It appears tapering is still on the horizon but not in the foreground, sparking aggressive trading during the night in Asian markets (Nikkei, Hang Seng, ASX200 all rallying as much as 2.7%).

‘Easy money’ has cheapened the USD, the greenback falling against most of its peers.

A knock-on effect seen in commodity markets, Brent Crude and US Light both above $107 and gold topping out at $1299.13 before easing to $1292 currently.

In corporate earnings Yum Brands, parent of KFC, Pizza Hut and Taco Bell, reported Q2 sales had dropped by 15% as business in China was hurt by a bird flu outbreak last year raising questions about the safety of chicken and disrupting supply chains. The affects clearly still being felt.

In focus today will be how the UK Index will continue to react following Bernanke’s comments (or lack of clarity) with regards to sustained QE. As stated earlier with the UK Index called higher by 110 points, the US Initial Jobless Claims and Continuing Claims at 13:30 will be watched closely. BoE Miles is speaking at 9:30 –  will he follow suit with Bernanke?

Company wise will be trading statements from AB Food, Balfour Beatty, HAYS, Premier Oil and Supergroup – another profit warning from Supergroup or will they shine like Burberry yesterday?

UK 100 surges in the futures overnight to 6654 level last seen on May 31st before settling around 6600. Having broken through resistance of 6500 this could now provide support. Next stop back to highs above 6800?

In FX, following Bernanke’s comments the dollar declined against most major peers. With £ vs $ gaining over 200 pips now trading at 1.511. £ vs € at 1.151 and € vs $ at 1.308. Sterling wise will BoE Miles cause the same movements as Bernanke or Carney.

In Commodities, following dollar weakness Gold is now testing the $1300 handle having moved almost 3% overnight. WTI nearing 15 month highs after US stockpiles fell for a second week now trading at $107

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Overnight Macro Data: (Source: Reuters/DJ Newswires)

• JAPAN      Rate Decision                         0.1%
• AUSSIE     Employment Change          10.3K
• AUSSIE     Unemployment Rate          5.7%

See Live Macro calendar for all details