World stock markets surged on Monday as investors grew increasingly confident that Hillary Clinton will win the US presidential election, after the FBI said it would take no further action against the Democratic nominee over her use of a private email server.
The three main US indices all ended the day more than 2% higher, following strong gains in markets across the world. The US dollar also strengthened and the oil price ticked up by more than 1% in further signs of traders’ confidence in a Clinton victory.
Investor anxiety that the Republican nominee,Donald Trump, might secure the presidency on Tuesday had pushed Wall Street lower for the previous nine days – the longest losing streak in more than 35 years. Those fears were enhanced following the FBI’s announcement on 28 October that it was reviewing newly discovered Clinton emails.
However, on Sunday night FBI directorJames Comey told Congress that a review of the new emails “had not changed our conclusions that we expressed in July with respect to secretary Clinton”.
“It is certainly a relief rally for Hillary Clinton – investors worldwide were concerned about the uncertainty surrounding Trump,” said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. “The other, more subtle reason, is if they are ending this email controversy you are not going to have a cloud hanging over her administration, creating roadblocks to getting things done.”
The Mexican peso, which has recently become inversely linked to the probability of a Trump victory, jumped 2% against the dollar to 18.7 pesos to the dollar.
US crude oil gained 1.1% to $44.57 a barrel, while the price of gold – a safe haven in times of anxiety and uncertainty – fell by 1.5% to $1,285 an ounce.
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