Global stocks rallied with commodities and Mexico’s peso on speculation Hillary Clinton’s chances of a U.S. election victory increased after the FBI said her handling of e-mails wasn’t a crime. Demand for haven assets waned, with high-quality government bonds, the yen and gold retreating.
The MSCI All Country World Index posted its biggest gain since June, the Dow Jones Industrial Average climbed 370 points and emerging-market shares surged as Clinton is seen by investors as the more predictable candidate. The peso jumped the most among major currencies, and a rally in the dollar versus the yen showed prices close to fully reflecting a Democrat win. Oil and metals paced gains in materials, while gold sank with Treasuries.
MSCI’s global gauge climbed 1.6 percent at 4 p.m. in New York, the biggest advance since June 29.
The S&P 500 Index rallied 2.2 percent to 2,131.37, erasing its November losses. The measure of market turbulence known as the VIX slid 16 percent after surging 39 percent last week. JPMorgan Chase & Co. and Microsoft Corp. advanced more than 2.9 percent, while Biogen Inc. led gains in health-care stocks.
Asian equities extended the last session’s rebound from a seven-week low and Mexico’s peso strengthened with opinion polls showing Hillary Clinton ahead of Donald Trump as Americans prepare to cast their ballots in the U.S. presidential election.
More than twice as many stocks rose as fell on the MSCI Asia Pacific Index in early Asian trading following the S&P 500 Index’s first advance in 10 days. Futures indicated gains are likely in China, Hong Kong and Singapore when those markets open. With a Bloomberg Politics national poll putting Democratic candidate Clinton ahead by three percentage points, haven assets nursed declines, with the yen near a one-week low and gold steady after its steepest slide in a month. Mexico’s peso, which tends to gain when Trump has a setback, advanced for a fourth day and crude oil hovered near $45 a barrel.
The MSCI Asia Pacific Index added 0.3 percent as of 9:21 a.m. Tokyo time, led by gains in raw-materials producers. Benchmarks in Australia, Japan and South Korea rose 0.3 percent, while New Zealand’s S&P/NZX 50 Index gained 0.8percent.
Reference: Bloomberg
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