Global stocks re­bound sharply after FBI clears Clin­ton over email

The Sun (Malaysia) - - SPEAK UP -

LON­DON: Global eq­ui­ties re­bounded sharply yes­ter­day, the eve of the US pres­i­den­tial elec­tion, after the Fed­eral Bu­reau of In­ves­ti­ga­tion (FBI) handed mar­ket favourite Hil­lary Clin­ton a ma­jor boost by rul­ing out crim­i­nal charges.

Asian and Euro­pean eq­ui­ties surged as traders breathed a sigh of re­lief after FBI chief James Comey said Demo­cratic nom­i­nee Clin­ton would not face charges over her use of a pri­vate email server, deal­ing a blow to her Repub­li­can ri­val, Don­ald Trump.

In Euro­pean trad­ing at 1445 GMT, Frank­furt and Paris both gained 1.7%, while Lon­don added 1.3%.

In Asia ear­lier, Tokyo’s Nikkei ended 1.6% higher while Hong Kong closed up 0.7%, with bank­ing gi­ant HSBC more than 2% higher after it re­ported a fore­cast-beat­ing rise in pre-tax profit.

Shang­hai closed up 0.3%, Sydney added 1.4% and Seoul gained 0.8%, while Sin­gapore put on 0.5%.

In New York, US stocks jumped about 1.5% in early trad­ing, join­ing the global rally.

About an hour into trad­ing, the broad-based S&P 500 was up 1.7%, ten­ta­tively snap­ping a nine-day los­ing streak. The Dow Jones In­dus­trial Av­er­age was up 1.5% while the tech-rich Nasdaq Com­pos­ite In­dex gained 2.0%.

The Mex­i­can peso staged a stun­ning rally against the dol­lar to re­coup all its losses from last week. The cur­rency is con­sid­ered a re­flec­tion of Trump’s chances be­cause of his anti-Mex­i­can rhetoric.

“Euro­pean eq­uity mar­kets are... boosted by the news that the FBI has not changed its con­clu­sion on the Hil­lary Clin­ton email in­ves­ti­ga­tion after an­nounc­ing a lit­tle over a week ago that it had been re­opened,” said Oanda an­a­lyst Craig Er­lam.

“The tim­ing of FBI di­rec­tor James Comey’s dis­clo­sure has once again dealt a se­ri­ous blow to Don­ald Trump’s chances of se­cur­ing the White House, some­thing the mar­kets have re­sponded very pos­i­tively to.”

But Fawad Raza­qzada, mar­ket an­a­lyst at Forex.com, warned that it was a “risky as­sump­tion” to be­lieve that Clin­ton will win just be­cause she is in the clear with the FBI.

“The opin­ion polls are still very tight and a lot of peo­ple will have made up their minds al­ready, re­gard­less of the FBI probe. So a win for Don­ald Trump is still a big risk which may be un­der­priced,” he said.

Also il­lus­trat­ing fears for global trade in the event of a Trump vic­tory, Swe­den’s krona fell yes­ter­day, re­flect­ing the vul­ner­a­bil­ity of the Scan­di­na­vian coun­try’s open econ­omy to trade re­stric­tions, deal­ers said. The krona dropped to a six-year low against the euro, hit­ting 0.10 per krona. – AFP

A busi­ness­man walks past an elec­tric quo­ta­tion board flash­ing the Nikkei key in­dex of the Tokyo Stock Ex­change in front of a se­cu­ri­ties com­pany in Tokyo yes­ter­day.

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