Monday November 07, 2016 17:22
There’s only one story today and it concerns a massive collective sigh of relief from investors and traders in equities and the U.S. dollar. The reaction was caused by the director of the FBI, James Comey, clearing Hillary Clinton in the most recent email kerfuffle in which some previously known emails were found on Mrs. Clinton’s top aide’s personal computer.
The Dow Jones Industrial Average was up by 365 points today, which amounts to a 2.00% rise for the session. The S&P 500 is up around 2.20% and the NASDAQ is up 2.35%.
European stocks were up strongly as were those in Asia, except for Shanghai, which was treading water.
The U.S. dollar was up against the euro, British pound, the yen and the Swiss franc. It gained most on the yen, a benchmark haven currency (as is the franc), rising 1.33%..
A strong dollar helped push gold lower. Today’s loss of $23 can be attributed about evenly to dollar strength and regular trading. The loss was about 1.80%. Silver was also off on the same market forces, although not quite as severely.
Benchmark U.S. 10-year bond yields had to rise in order to lure investors into the haven play that is getting a lukewarm reception at the trading desks.
On the energy front, OPEC – the wolf crying “Production Cuts!” – claims once again that at least a freeze is in the offing. That caused West Texas Intermediate crude to rise about 91¢ per barrel or 02.00%. It thus brushed up against the $45 per barrel mark. Brent North Sea was a little softer but up a healthy 1.60%..
The COE VIX volatility gauge, which had soared 40% last week, fell about 16% on the session..
No matter who you are for or against, tomorrow will mark the end of what most agree has been the electoral equivalent of the Bataan Death March. By one count, this election started 570 days ago if you count from the day the first candidates threw their hats into the ring. That’s a little more than a year and a half.
So, we have a little more than twenty-nine months to go before the process starts again. Enjoy your time off.
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