FTSE 100 gains £28bn on hopes of Clinton win in US election

 

The FTSE 100 has joined other world stock markets in surging after the FBI halted its latest investigation into Hillary Clinton’s use of emails.

London’s premier share index closed 1.7%, or 113 points, higher at 6,806 on Monday – the first session since it was revealed the Democrat presidential candidate would not face charges linked to her private email server.

The fresh probe, announced on 28 October, had sent a wobble through financial markets with some US indices enduring a nine-day losing streak ahead of Monday trading.

The FTSE 100 lost £76bn in value in its worst week since January last week.

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Investors see Mrs Clinton as the continuity candidate and had been largely comforted by her poll lead – slim as it is – over her rival Donald Trump.

He is viewed as a greater potential risk as he has been untested in a major political role, despite his vast business experience.

The FTSE’s climb on Monday – largely matched by other major stock markets – was aided by the recent strengthening of sterling coming off the boil as the pound lost 1% of its value against the dollar to trade at $1.24 on Monday evening.

Stocks climbing sharply included miners and pharma firms which make the bulk of their sales in dollars and therefore benefit from converting that cash to pounds.

Kathleen Brooks, research director at City Index, said: “Clinton’s expected triumph now that she has been cleared by the FBI is also boosting the US dollar.

“City Index clients have bought the dollar versus the Japanese yen on Monday, and are also long the USD (dollar) versus the euro.

“Interestingly, our clients that are trading cable, 70% of them are still long the pound.

“This could be a sign of a larger readjustment in the pound after the court ruling last Thursday that may delay when the Government can trigger Article 50.”

 

 

 

[Source:- Yahoofinanace]