US stocks surge after FBI clears Clinton

Lady Gaga nov 8

The Dow Jones Industrial Average's gain on Monday was its best performance on the day before a presidential election since 1932.

The S&P 500 had dropped 3 percent over the last nine trading sessions, the longest consecutive losing streak for the benchmark indicator in 36 years, in large part after FBI Director James B. Comey said the agency was again reviewing Clinton's use of a private email server while she was secretary of state.

European markets have soared after USA presidential candidate Hillary Clinton was given the all-clear from the Federal Bureau of Investigation over her handling of classified information. "In those kinds of markets, people are jumping into stocks that they think are cheap".

And it's not that investors love Clinton. Trump, who is more unpredictable, is viewed less market-friendly by investors as it is hard to get a good handle on what a Trump administration might look like and how his views on trade would impact asset prices around the world.

Financial and health care stocks led the broad rally, as investors focused on the latest turns in the presidential race in the final hours before Election Day. Corporate earnings are improving, and the USA economy has showed fresh signs of strength.

Irish no-frills airline Ryanair Holdings is adding 5 percent on reporting a 7 percent increase in half yearly after tax profits, and lifting its long-term traffic growth forecast by 10 percent. And the Mexican peso, which has tended to falter as Trump's chances improve, surged about 2.5 percent. The reason: the polls may be wrong and Trump may still engineer a surprise win. The defensive utilities sector brought up the rear with a 0.26 per cent gain.

Gold and silver also fell.

The better mood on Wall Street also caused the closely-watched VIX volatility index to plunge 17% on Monday, its biggest decline since late June.

CMC chief market strategist Michael McCarthy said investors were largely holding off due to the USA presidential election taking place on Tuesday in the United States.

So why are markets rooting for Clinton?

Global markets rose following the FBI's announcement.

"If Trump wins and really starts a trade war, even attacking USA companies that import goods they manufacture overseas, the outcome could be a recession", Ed Yardeni, president of investment advisory Yardeni Research, wrote in a note on Monday.

Citigroup warned clients last week the S&P 500 could plunge 3% to 5% immediately if Trump is elected.

Another big fear: the wildcard nature of Trump himself.

The FBI letter was "enough to have the futures rocketing", Michael Block, chief market strategist at Rhino Trading, wrote in a note.

Of course, Brexit showed that markets can turn just as quickly.

He said at this point, if Trump secures the vote, markets will be caught by surprise - somewhat similar to how investors were shocked when the United Kingdom defied predictions and recently voted to leave the European Union.

Related news:

Hot News

isis-killer-beheading-video-story-top Clinton Foundation: Donor Killed 'Unfavorable' Bill Clinton Tabloid Stories
Nov 08, 2016 - 03:22
In previously released emails, Band had called Chelsea Clinton a "spoiled brat" who hadn't found her "focus in life". The revelation was made in an email by Doug Band , former top aide to President Bill Clinton , on January 4, 2012.

isis-killer-beheading-video-story-top You can now shop for Alexa skills on Amazon.com
Nov 07, 2016 - 00:46
If you don't have a phone with OK Google detection enabled, you can go ahead and use OK Google for Google Home . When asked about a meatloaf recipe, Alexa offered a Bing search link, while Google Home dictated the steps.

isis-killer-beheading-video-story-top Hedge funds slash United States crude longs as OPEC dithers on cuts
Nov 07, 2016 - 00:44
OPEC officials have said they need non-OPEC suppliers to cut production as well. Williams, energy economist at WTRG Economics in London, Arkansas.

isis-killer-beheading-video-story-top Hayward scores 28 in season debut, leads Jazz over Knicks
Nov 07, 2016 - 00:43
In losses to the Cleveland Cavaliers, Detroit Pistons and the Houston Rockets, he averaged 12.3 points on 34.3 percent shooting. Hayward had 28 points while George Hill collected 23 and nine assists for the Jazz on Sunday (Monday AEDT).

isis-killer-beheading-video-story-top Jose Reyes' Contract Option Picked Up by Mets: Latest Details and Reaction
Nov 06, 2016 - 00:41
But Niese struggled after returning to NY , posting an 11.45 ERA in six appearances before suffering a season-ending knee injury. Otherwise, Niese's strikeout and walk rates (6.55 and 3.5) were fairly normal, as was his ground-ball percentage (51.1).

isis-killer-beheading-video-story-top Aung San Suu Kyi Declines to Lay Blame for Violence in Myanmar
Nov 06, 2016 - 00:37
Since the latest violence, the government had restricted aid workers and media from the conflict areas of the northwestern state. The violence is the most serious to hit Rakhine since hundreds were killed in communal clashes in 2012.

Sterling jumps as government loses Brexit ruling
Nov 05, 2016 - 05:56
Connor Campbell of Spreadex said that the ruling will be challenged in the Supreme Court next month. Against the euro the pound was up a more modest half a cent on Friday to €1.127.

isis-killer-beheading-video-story-top China Launches Its Biggest Rocket Yet - Long March 5
Nov 05, 2016 - 05:53
The new rocket is part of the venerable Long March family, which has been launching spacecraft for more than four decades. The rocket blasted off from the coastal Wenchang Space Launch Center in Hainan Province at around 8:43 PM local time.

DHS 'concerned' about cyber-related election confusion
Nov 05, 2016 - 05:50
The US government is combatting the threat in a way that is without precedent for a presidential election. The U.S. use of cyber attacks in the military context, or for covert action, is not without precedent.

isis-killer-beheading-video-story-top CFP Rankings: #5 Washington on outside looking in
Nov 04, 2016 - 00:54
Texas A&M (7-1) 5. " Texas A&M has got four wins against teams with better records than.500", Hocutt said. Rounding out 5-10 is Washington , Ohio State, Louisville , Wisconsin , Auburn , Nebraska , and Florida .

Key Game 7 questions for the Cubs
Nov 04, 2016 - 00:52
ESPN reminded us before Game 7 that the Cubs and Indians have 174 combined seasons of " broken hearts and shattered dreams ". The Cubs took the lead early in the first inning and seemed in control of the game before nearly letting this one get away.

AK Steel Holding Corporation, (NYSE:AKS), American Eagle Outfitters, (NYSE:AEO)
Nov 04, 2016 - 00:51
If you are selling a stock, you are going to get the bid price, if you are buying a stock you are going to get the ask price. It sells flat-rolled carbon steel products, consisting of coated, cold-rolled, and hot-rolled carbon steel products.

'Pressure is on us against Southampton'
Nov 04, 2016 - 00:50
"I think many players can score in every game and not just Charlie, but Charlie at this moment is very interesting and important for us".

isis-killer-beheading-video-story-top Chiefs' Smith ruled out, Charles undergoing surgery on knee
Nov 04, 2016 - 00:50
Gus Bradley made his head-coaching debut with the Jaguars against the Chiefs and Alex Smith to open the 2013 season. After a dominating win over Indianapolis, the Chiefs (5-2) are heavily favored over the Jaguars (2-5) for Week 9.

isis-killer-beheading-video-story-top EPS for Allergan plc Ordinary Shares (AGN) Expected to Rise
Nov 04, 2016 - 00:48
Orbis Allan Gray Ltd acquired a new position in Allergan PLC during the first quarter worth approximately $41,241,000. Allergan Inc. ( AGN ) announced a profit for third quarter that lost ground compared to the same period a year ago .