Dubai
Global stocks snapped a nine-day losing streak on Monday after the FBI cleared US presidential candidate Hillary Clinton’s name in the email leak case.
Ahead of the US elections, Hillary Clinton saw a marginal lead in the CBS/Times poll by 4 per cent against Donald Trump, triggering a risk on sentiment in markets.
“Traders are focused in positioning themselves ahead of the US election,” Naeem Aslam, chief market analyst with Think Markets said.
The S&P 500 jumped 1.21 per cent to be at 2,112.50, snapping the longest losing streak since 1930. The Dow Jones Industrial Average futures was 1.16 per cent higher at 18,094.90. The Euro Stoxx was 1.31 per cent higher at 333.10, and the FTSE 100 was 1.41 per cent higher at 6,787.64. The MSCI Emerging Market index was 1.23 per cent higher at 890.92.
Gold fell as safe haven demand eroded. Gold fell more than 1 per cent on Monday, after topping at $1,300 an ounce.
International spot gold was down 1.40 per cent to be at $1,286.83 an ounce, after gaining for the past seven sessions. The dollar index jumped 0.30 per cent at 97.1.
“There is always an element of deja vu effect, which we had during Brexit. Right now, the base case for markets is that Clinton will win the election,” Aslam said.
“Donald Trump’s victory will not only bring the knee jerk reaction for the market, but we are also concerned about the geopolitical uncertainty,” he added.
There was a massive sell-off in equities and gold jumped more than $50 an ounce after the UK decided to move out of the European Union.
