Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 called to open +16pts at 6684 following yesterday’s 1.2% rally in the UK flagship index as markets globally gave a warm reception to Janet Yellen’s first testimony as head of the US Federal Reserve. The UK Index is now trading at its highest closing level since late January.

In Asia stocks climbed for a sixth day after Chinese trade data exceeded estimates. Chinese exports jumped 10.6 percent in January from a year earlier, eclipsing an estimate for a 0.1 percent gain, while imports accelerated 10 percent and the trade surplus widened. The Hang Seng was up 233 points at 22,186 whilst the Nikkei added 81 points to 14,800.

In the US, markets were reassured by comments made by Yellen, pledging to keep US interest rates low and to further trim the bond buying programme if the economy keeps getting better. The Dow Jones rallied by 193 points to 15,995 whilst the S&P was up just shy of 20 points at 1,819.

In focus today will be the aftermath of Yellen’s testimony yesterday, in which she said “Recover in labor market far from complete” and that she would be continuing to maintain Bernanke’s policies. After which we saw decent gains in all US indices (Dow +1.2%, S&P +1.1%, Nasdaq +1%). All eyes will now be pinned on the US Fed Budget at 19:00. Closer to home we have the BoE inflation report out at 10:30am with Mark Carney also speaking.

The UK 100 broke above 6650 with ease yesterday and now knocking on the levels of 6700. Next stop will be resistance at 6750 then 6800. With gains of almost 300 points since 4^th Feb will the markets pause for some consolidation. However with strong Chinese trade figures overnight the miners could continue the UK Index s upward trend.

In commodities, gold fell a touch to $1285 from highest levels since November snapping a five-day advance as Yellen pledged to continue with a gradual tapering of stimulus. We also saw silver down to $20.11 following an impressive eight days of gain. WTI rose once more as US stockpile shrank again for last week, knocking on the doors of $100.5 highs since December last year.

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

• Aussie      Credit Card Purchases    IN-LINE
• China       Trade Balance                    BETTER
• China       Exports                                BETTER
• China       Imports                               BETTER

See Live Macro calendar for all details

UK Company Headlines: (Source: Reuters/DJ Newswires)

• TUI AG says more confident for Hapag-Lloyd cruises unit
• Carillion JV wins 110 mln stg Middle East contract
• Punch withdraws restructuring resolutions, extends talks
• Avanti Comms H1 revenue rises 81 pct to $25 mln
• Tullow says Mauritania well opens new oil play
• Telecity confirms positive 2014 earnings outlook
• WS Atkins says full-year outlook remains unchanged
• Speedy Hire says to meet full-year expectations
• African Barrick gold output up but miner sinks to $781 mln loss
• Reckitt Benckiser FY EPS up 2 pct, market conditions “more challenging’