Home News European stocks jump at open on FBI Clinton news

European stocks jump at open on FBI Clinton news

Published on November 07, 2016

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.”

Markets were plunged into turmoil on October 28 when Comey revealed that messages linked to Democratic presidential nominee Clinton were being investigated, sending rival Republican Donald Trump surging in opinion polls just days before the November 8 vote.

However, Comey on Sunday announced he would not change his July recommendation that Clinton not be prosecuted for allegedly putting US secrets at risk.

That sparked a sharp rebound in Asian markets and the Mexican peso on Monday, which spilled across into Europe.

“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.”

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