Dollar jumps as FBI decision gives Clinton eleventh hour boost
The dollar jumped on Monday as news that Democrat Hillary Clinton would not face criminal charges related to her use of a private e-mail server gave the U.S. presidential contender an eleventh hour boost before the Nov. 8 election..
The FBI said late on Sunday that it stood by its earlier finding that no criminal charges were warranted against Clinton.
Markets have tended to see Clinton as the status quo candidate, and news favouring her bid often boosts risk appetite, whereas the stance taken by her Republican rival Donald Trump on foreign policy, trade and immigration issues is seen posing potential risks for global growth.
The dollar was up 1.2 percent at 104.255 yen JPY= after surging to 104.530 in early trade. It had declined to 102.550 last week as polls showed a tightening U.S. presidential race.
The euro was down 0.6 percent at $1.1077 EUR=, knocked off a four-week peak of $1.1143 reached on Friday.
The latest RCP Polls Average indicated Clinton lead Trump 1.8 percentage point.
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Don’t Worry When the Stock Market Goes Crazy After the Election
In the hours after the president is elected, equity investors need to brace for volatility. What they shouldn’t do is panic.
That’s because regardless of how prices react on Nov. 9, next-day moves in the S&P 500 Index are useless in telling what comes after. While the index swings an average 1.5 percent the day after the vote, gains or losses over the first 24 hours predict the market’s direction 12 months later less than half the time.
This matters because the compulsion to act in the vote’s aftermath is often very strong -- stocks swing twice as violently as normal those days, data compiled by Bloomberg show. They plummeted 5 percent just after Barack Obama beat John McCain in 2008. But while nothing says Wednesday’s reaction won’t be a harbinger for the year, nothing says it will, either, and investors should think before doing anything rash.
“Trying to trade that is very difficult,” said Thomas Melcher, the Philadelphia-based chief investment officer at PNC Asset Management Group. “Even if the market sells off, if you have any reasonable time horizon, that should be a buying opportunity. The dust will settle and people will conclude the economy is OK.”
In the 22 elections going back to 1928, the S&P 500 has fallen 15 times the day after polls close, for an average loss of 1.8 percent. Stocks reversed course and moved higher over the next 12 months in nine of those instances, according to data compiled by Bloomberg.
Oil prices bounce after OPEC reaffirms plan to cut output
Oil prices rose by over 1 percent on Monday, pushed up by a statement from the producers' club OPEC that it was committed to a deal made in September to cut output in order to prop up the market.
Brent crude LCOc1 was at $46.12 per barrel at 0746 GMT, up 54 cents, or 1.18 percent, from their previous close.
U.S. West Texas Intermediate (WTI) crude CLc1 was up 61 cents, or 1.38 percent, at $44.68 a barrel.
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) said on Monday the group was committed to a deal made in Algiers to cut output.
"We as OPEC we remain committed to the Algiers accord that we ... put together. All OPEC 14 we remain committed to the implementation," Mohammed Barkindo told reporters at a conference in Abu Dhabi.
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