Markets ‘to take FBI probe in stride’
Peter Brown, owner of Baggot Asset Management, yesterday said revelations that the FBI had re-opened an investigation into Ms Clinton’s emails had jolted US stock and currency markets late Friday, but that financial observers were still pricing in the assumption that she will comfortably secure the White House in the election on tomorrow week.
“It was fully digested on Friday. The dollar had a dip.
"If there was any hint that Trump would win, the markets would have gone into a tailspin and the effect would have been many times worse that Brexit,” Mr Brown said, adding that the markets had already decided that the Democratic nominee would win the race.
Many market observers have said that stock markets favour a Clinton victory because of the uncertainty of what a Trump White House would entail.
However, Ms Clinton’s once commanding lead over Mr Trump has narrowed considerably, according to the average of polls tracked by the RealClear Politics website, but she still leads in many of the so-called battleground states where the election will be decided.
Those opinion polls were conducted before the dropping of the so-called October surprise involving the FBI and Ms Clinton’s emails on Friday.
US psephologist Nate Silver of Fivethirtyeight.com said that there should be “a pretty good read” from opinion polls on voters’ first reactions to the latest email revelations by the middle of this week.
On Friday, US stocks declined, with the S&P 500 Index falling to a six-week low, after the FBI reopened a probe into her emails.
That rattled investors, wiping out gains as equities careened down from the day’s highs. An earlier advance came as data bolstered speculation a stronger economy may lift corporate earnings.
The US Federal Reserve is due to meet later this week, but is expected to defer raising interest rates until after the election at its December meeting.
