Clinton off the hook and markets are risk on - ANZ

Analysts at ANZ explained that markets experienced a relief rally overnight as the FBI absolved Hillary Clinton of committing a crime for a second time.

Key Quotes:

"Global equities rallied, USD has gained against most other currencies, US Treasury bonds sold off, with gold down, oil up, and volatility becoming cheaper. US equities were up around 2% at 7am AEDT, with gains broad- based across industries.

In Europe, Euro Stoxx was up 1.9%; FTSE 100 up 1.7%; CAC 40; and DAX up 1.9%. The main rationale for USD strength is that a Clinton win would likely solidify a December rate rise. USD/MXN has dropped roughly 2% with some of the ‘Trump trade’ being unwound. Gold has declined 1.9% overnight, to be back below USD1,280/oz. Oil is up 0.8% on comments that Russia would support efforts by OPEC to stabilise production."