Yellen and China dictate markets

Heading into the close the FTSE 100 is up 20 points as traders remain confident that quantitative easing will not be tapered any time soon.

Equity markets hold

Equity markets are holding onto hope that the US Federal Reserve's bond-buying scheme will remain unchanged for a few more months at least; Janet Yellen refrained from rocking the boat yesterday when she reassured investors that the US economy is not yet strong enough to stand on its own two feet.

Beijing showed some signs that the old regime is changing slowly but surely, by announcing yesterday that foreign banks will be allowed to open in the country, putting a dent in the state-run banking monopoly. Mineral extractors are now the best performing stocks in London as traders feel the reforms will boost China's manufacturing.

Dow lifted by dove

In the US, the Dow Jones is up 35 points at 15,912 as it looks likely that Ms Yellen will keep the same dovish policy as Ben Bernanke. Despite yesterday's comments, however, the new chairwoman has made it clear that QE will not last forever, gently lettings traders know that tapering is inventible.

China boosts copper

Copper is in the black as traders scramble to buy the red metal on the back of the Chinese reforms.

Dollar weaker

The US dollar is softer today as Ms Yellen's commitment to the US stimulus package has weakened the greenback.

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