Stocks rally on increased Hilary Clinton victory chances, as investors are moving into cash amid increasing uncertainty over the outcome of the elections. How the traders react to such recovery?
7 November, AtoZForex –The Stock market, US dollar, and commodity prices are ascending, after Federal Bureau of Investigation (FBI) has announced no criminal charges for Hillary Clinton, pushing her chances for the US Presidency higher.
Increased Hilary Clinton victory chances
With the US elections due tomorrow, the speculator feeling enhances, aiming for safe-haven assets like gold, where Japanese Yen and government bonds are falling. Last week, Hillary Clinton's chances for the victory were largely influenced by the FBI investigation on her private email usage, slightly cutting the gap between Clinton and Trump in polls. Lee Hardman, currency analyst at Bank of Tokyo-Mitsubishi UFJ said in the note about the US elections that the clearance from the FBI gives a very late support to Hillary Clinton's campaign. He has commented:
“Over the past few weeks, the market demonstrated that a victory by Republican candidate Donald Trump a Brexit-like outcome, hurting the US’s economic outlook and America’s standing around the world.”
Will Stock markets rally last?
There might be a chance of market rebounding on boosted chances of Clinton victory on coming trading sessions in the US market. The S&P 500 is expected to bounce 1.3 percent, when the opening ringer rings later in New York, finishing a nine-session losing streak for the Wall Street benchmark — it’s longest since 1980.
The Stoxx 600 in the European market, which closed Friday's session at a four-month low, is now up 1.1 after Japan drove Asia higher with a 1.6 percent gain for the Nikkei 225. The US dollar index is up 0.6 percent, at 97.67 as the greenback gains 0.7 percent against the euro to $1.1057, picks up 1 percent against the Pound to $1.2396, and jumps 1.2 percent to ¥104.39.
Mexican Peso, which has turned into a prevalent market intermediary of the US presidential battle on account of concerns Mr. Donald Trump will hurt monetary ties with the US's southern neighbor, is up 2 percent at 18.6465 for every dollar. The currency has experienced its biggest one-day jump since September 27 in the wake of the main presidential open deliberation.
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