US, European stocks jump after FBI lifts cloud over Clinton
US stock futures jumped after the FBI reaffirmed Sunday its decision to not prosecute the Democratic presidential nominee
US stock futures jumped after the FBI reaffirmed Sunday its decision to not prosecute Democratic presidential nominee Hillary Clinton over her use of private email while secretary of state.
The Federal Bureau of Investigation announced a review of newly discovered emails had provided no reason to alter its July decision that Clinton and her aides’ use of the private server for official documents, while “reckless,” did not warrant criminal charges.
The lifting of an FBI threat that Clinton might face charges -- less than two days before her face-off with Republican Donald Trump -- raised investor sentiment on Wall Street. Ahead of Monday’s market opening, futures on the broad-market S&P 500 index leaped 1.4 percent to 2,108.25. Futures based on the 30-stock Dow Jones Industrial Average were up 1.1 percent at 17,999.
The turnaround on Wall Street came just after FBI Director James Comey announced, in a letter to Congress, that no criminal charges were warranted against Clinton. Late last month, Comey sent shockwaves through both campaigns by announcing a renewed FBI investigation into Clinton’s email use. That revelation was criticized by Democrats, applauded by Republicans and eroded Clinton’s lead in public opinion polls against Trump.
US stocks have taken a beating as the November 8 election race tightened, amid concerns a Trump victory could bring sharp shifts in US economic policy. On Friday, the S&P 500 slid for the ninth straight session, its longest fall since 1980.
European stocks jump
European stocks leapt in opening deals on Monday after the FBI said Hillary Clinton would not face charges over her use of a private email server. In initial deals, London’s benchmark FTSE 100 index rallied 1.6 percent at 6,798.42 points on the eve of the US presidential election.
In the eurozone, Frankfurt’s DAX 30 won 1.5 percent to 10,410.56 points and the Paris CAC 40 index won 1.4 percent to 4,440.11 compared with Friday’s close. “European equity markets are... boosted by the news that the FBI has not changed its conclusion on the Hillary Clinton email investigation after announcing a little over a week ago that it had been reopened,” said Oanda analyst Craig Erlam.
“The timing of FBI director James Comey’s disclosure has once again dealt a serious blow to Donald Trump's chances of securing the White House, something the markets have responded very positively to.”
“A positive open (in Europe) comes as Hillary Clinton is given the all clear from the FBI for a second time, director Comey telling Congress the bureau has ‘not changed its conclusions’ reached in July based on fresh evidence,” said analyst Henry Croft at Accendo Markets. “Polls are indicating Clinton pulling away slightly, although her lead remains well below the levels pre-FBI investigation.”