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

UK 100 called to open +20pts at 6946 this morning, back once again from highs of 6960 touched yesterday afternoon. The 2.5-month uptrend is still intact and we look to support around 6940 for a further push north today. We also note that the index is in a rising channel since 10-Feb. Watch levels: Bullish 6980, Bearish 6880.

The positive open comes as Greece and the Eurogroup cleared one of the final hurdles towards extending the bailout for another four months after the latter approved the list of reforms presented at the 11^th hour on Monday night. But while ‘Grexit’ retreats to the side-lines, the IMF and ECB have expressed concerns that the list failed to adhere to promises made by Athens last week.

US markets ended higher on Tuesday as both the Wall St. and S&P indices hit record highs following Yellen’s speech, where many investors saw a ‘subtle change in emphasis’ from the Fed chair indicating that it would remain ‘patient’ regarding a rate rise any time soon. The USD benefitted as a result despite other Fed members sticking to their guns on a June hike.

In Asia, markets rose on Wednesday following Yellen’s comments and positive Chinese manufacturing data and despite a record fall in export orders in the world’s No. 2 economy. China is back in the game today after Lunar New Year holidays – watch for potential benefits in key trading partner Australia and impact on the gold price.

In focus today will be the markets’ reaction to the Fed’s Yellen who spoke yesterday afternoon. Data-wise we have Chinese manufacturing PMI and Consumer Confidence data, UK BBA Loans for House Purchases and US New Home Sales plus a heavyweight line-up of speeches that sees the Bank of England’s Carney & Co., more Yellen in the US and the ECB’s Mario Draghi all on the bill. Check today’s Macro Calendar for updates.

Oil remains under pressure, with both Brent ($58) and WTI ($49) having dropped below Feb rising support due to continued global supply glut concerns. Another spike yesterday afternoon was again quickly subdued as reassurance from OPEC’s President that an emergency meeting would not take place before June.

Gold ($1210) is firmly back in its 2-month downwards channel with overnight gains waning. The strong USD on the back of the dovish US Fed chatter and China’s absence have weighed on the metal. However, with China back trading again, we could be in for a small recovery.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.

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

• China                     HSBC Manufacturing PMI                             Beat, Improved
• China                     Westpac-MNI Consumer Sentiment       Flat

See Live Macro Calendar for full data line-up, incl. consensus expectations

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

• Mcdermott and Petrofac form strategic alliance to pursue deepwater projects
• AO World cuts earnings outlook on UK slowdown
• Ultra Electronics to take 47 mln stg charge on Oman IT contract
• St. James's Place boosts final dividend by 50 pct
• Whitbread sees profits at top of forecasts after Q4 sales rise
• Barratt Developments posts 75 pct rise in first – half profit
• New British bank TSB's full – year profit rises
• Kier hikes dividend after 11 pct rise in H1 revenue
• AstraZeneca taps biotech firm Orca for autoimmune disease drugs
• International Personal Finance FY pretax profit rises 4.6 pct
• Man Group pretax profit jumps 62 pct to $481 mln
• Henderson 2014 underlying pre – tax profit rises 13 percent
• Hays hikes dividend after strong net fee growth in Britain
• Polish growth boosts International Personal Finance's profit
• SuperGroup's finance chief leaves after he was declared bankrupt
• Carillion joint venture awarded two Middle East contracts worth 380 mln stg
• Industrial landlord Segro's full-year NAV rises