Yellen bounce keeps equities ticking higher

Equities continue to find buyers, a day after Janet Yellen prompted a rebound in risk appetite.

• Stocks hold their ground

• Will Yellen spoil the party on day two?

• AstraZeneca hit by leadership woes

Investors have maintained their positive outlook this morning, as the after-effects of Janet Yellen’s testimony continue to resonate. US Treasury yields have taken a knock as investors scramble to review their outlook for Fed policy, and this drop in fixed income yields means that stock markets have become more attractive in comparison. There is the possibility that, having seen the market reaction, Ms Yellen might look to row back on some of her comments, but for now investors seem content that the Fed is still treading carefully. US CPI might also be a disruptive force, should it counteract the Fed’s view of inflation weakness as ‘temporary’. Still, the strong recovery in risk assets this week tends to reinforce the belief that this bull market has a lot further to run.

AstraZeneca sits at the bottom of the index this morning, as speculation mounts over its CEO, Pascal Soriot, and a potential move to an Israeli rival. Shareholder rebellions over pay, plus an apparently hefty sign-on bonus, are bound to make Mr Soriot weigh his options carefully. The irony of a move from a firm under pressure from the expiry of big-name patents to the world’s biggest generic drug maker will not be lost on investors. Ahead of the open, we expect the Dow to start at 21,558, 26 points higher from yesterday’s close.