European stocks are going wild after the FBI cleared Clinton
FBI Director James Comey informed Congress on Sunday around 7:15 a.m. GMT (3:15 p.m. ET) that a review of new emails found in relation to the bureau's investigation into Clinton's use of a private email server had not yielded any reason for charges against the Democratic presidential nominee.The failure of the FBI to find any reason to charge Clinton likely increases her chances of winning Tuesday's election and becoming president. Advertisement
Clinton is favoured over her Republican rival Donald Trump in the markets. That is largely down to the fact that she is seen as a steady pair of hands, while Trump is something of an unknown, and as we know, markets hate uncertainty.
As a result of the news, all of Europe's major stock indexes are rocketing in early trade, climbing more than 1% in their first session after the weekend.In Britain, the FTSE 100 has climbed more than 1.3% so far, bouncing back from a bad few days last week. Here is the chart as of around 8.25 a.m. GMT (3.25 a.m. ET):
Britain's benchmark index tumbled in trade last week after the pound rallied on the High Court's ruling that parliament must be allowed to vote on the triggering of Article 50.About 70% of the revenue of the companies that make up the FTSE 100 is derived from abroad, meaning they make more money when sterling is weak. That is because the index is full of mining companies, oil firms, and pharmaceutical giants that use the UK as a base but tend to denominate their assets in dollars. That goes in reverse, so when sterling is strong, stocks in the UK tend to fall.Advertisement Investing.com
Elsewhere in Europe, moves are broadly similar, with Germany's DAX higher by just over 1.4%. Here's the chart:
In other market news, the rally in the pound - which enjoyed its best week against the dollar since the financial crisis in percentage terms last week - seems to have run out of steam with traders reluctant to push sterling much higher after last week's late rally.