Global developments. The main focus today is Janet Yellen’s monetary policy report to the House and Senate. We expect little change to the Fed’s policy stance and Yellen will likely want to emphasise dovish forward guidance and that tapering will continue, but remain data-contingent. Her assessment of the US economic situation will also be important, but she is likely to reiterate that she wants to see a further improvement in labour market conditions. Overall, Yellen’s testimony is expected to be supportive and the main US data releases (industrial production and the Michigan consumer sentiment index) are on Friday.
Russia (RTS Index -0.4%, RUBUSD @34.76). The Russian market was barely unchanged on Monday, as were major blue chips.