Stocks, dollar rally after FBI clears Clinton in email probe

Mon Nov 7, 2016 4:14pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Chuck Mikolajczak

NEW YORK (Reuters) - Stock markets across the globe rallied on Monday, along with the U.S. dollar, notching their biggest gains in weeks after the FBI stood by its view that no criminal charges were warranted against Hillary Clinton over her email practices.

The news lifted a cloud over the Democrat's presidential campaign and gave it new momentum before Tuesday's U.S. election, sending the benchmark S&P 500 index up more than 2 percent. The index snapped a nine-day losing skid, its longest in more than 35 years, and posted its best daily performance in over eight months.

European stocks jumped and many of the safe-haven assets that had performed strongly last week, when polls showed Republican candidate Donald Trump closing the gap with Clinton, reversed course. Gold and U.S. Treasury bond prices fell.

Investors had been unnerved in recent days by signs of a tightening U.S. presidential race, evidently preferring what is seen as a known quantity in Clinton, over the political wild card, Trump.

"The market hates uncertainty; it’s tough to fall back on a cliché but it is literally true," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. "Prior to those revelations, people saw Clinton kind of cruising to a victory and that put it in some doubt."

The Dow Jones industrial average rose 371.32 points, or 2.08 percent, to 18,259.6, the S&P 500 gained 46.34 points, or 2.22 percent, to 2,131.52 and the Nasdaq Composite added 119.80 points, or 2.37 percent, to 5,166.17. MSCI's all-country world index was last up 1.6 percent, its best day since June 29. The index had closed at a four-month low on Friday.

Europe's index of the leading 300 shares closed 1.7 percent higher, its strongest rally in nine weeks, with a 2.9 percent rise in financials leading the way.

One of the biggest winners was the Mexican peso, which has been a market proxy for sentiment over the U.S. election and has performed in inverse correlation with Trump's perceived chances of winning the White House.   Continued...

Investors look at computer screens showing stock information at a brokerage house in Shanghai, China, April 21, 2016. REUTERS/Aly Song/File Photo