FTSE up as Barclays stagger bad news

In mid-morning trading the FTSE 100 is up 50 points as all eyes are on the new Federal Reserve chair Janet Yelle's first testimony before Congress this afternoonn.

Traders are pricing in Ms Yellen’s dovish outlook, as she is likely to keep the stimulus package unchanged for the foreseeable future. Ben Bernanke finished his chairmanship on a high note, managing to bring down unemployment and reduce the bond-buying scheme, but Ms Yellen is tipped to toe the line for the next few months.

Barclays tried to stagger the bad news by unexpectedly revealing its headline figure yesterday, but announcing jobs cuts and increasing the bonus pool has backfired on the bank's share price. 

Mega miner Glencore Xstrata reported a 26% increase in copper production, but the jump in output still isn’t enough to offset the soft copper price. 

Thomas Cook has registered a quarterly loss as political uncertainty in Egypt is playing havoc with its bookings.  

In the US we are expecting the Dow Jones to open 60 points higher at 15,861 as Ms Yellen takes over the reins of the Fed. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.