Yellen's remarks continue to shore up markets

Global stock markets posted further gains today after the new head of the US Federal Reserve indicated that interest rates would remain low for a while to come.
Stronger Chinese trade figures and the shelving of another US debt limit battle also helped to shore up markets, which appear to be getting over the recent turmoil that was prompted by uncertainties over emerging economies.
Gains in Europe accelerated by midday, tracking the overnight rise recorded in Asia after Janet Yellen's remarks yesterday.
Though Yellen indicated that she would continue with the reduction in the Fed's stimulus, she stressed that interest rates would remain at low levels for many more months at least. That message was similarly reiterated by Bank of England Governor Mark Carney.

"It seems that investors are now convinced that the correction is over and are once again happy to buy the dips, although maybe not quite as aggressively as they were at times last year," said Craig Erlam, market analyst at Alpari.
Britain's FTSE 100 added 0.4 per cent to 6,698.22 and France's CAC 40 rose 0.5 per cent to 4,304.91. Germany's DAX climbed 1 per cent to 9,568.42.

Futures augured a higher open on Wall Street, with Dow and S&P futures both up 0.1 per cent.
The dollar has been broadly steady in the of Yellen's remarks. The euro was down 0.4 per cent at USD 1.3579 while the dollar fell 0.2 per cent to 102.26 yen.

Earlier in Asia, worries about China's economy were eased after the government reported faster growth in imports and exports for January. That helped stocks across the region to post solid gains, including China's Shanghai Composite Index, which ended 0.3 per cent higher.
Elsewhere, Japan's Nikkei 225 gained 0.6 per cent to finish at 14,800.06. Japanese markets were closed yesterday for a national holiday. Hong Kong's Hang Seng surged 1.5 per cent to 22,285.79 and South Korea's Kospi added 0.2 per cent to 1,935.84.