News that the FBI would probe further into Hilary Clinton’s emails fuelled fresh concerns over the weekend and caused nervy trade throughout the Asian session.
With a little over a week until voters take to the polls, Hilary Clinton’s chances of beating Donald Trump in the race to the White House were slashed as it was announced the FBI would be reviewing newly discovered emails belonging to one of her closest Aides, Huma Abedin. The full extent of the affect these latest developments will have on the election outcome is still unclear, however the news alone was enough for investors to lose their appetite for equities and send the S&P 500 tumbling 0.31% with the dollar also taking a hit as a result.
The pound has been on the receiving end of several news and data releases recently with last week’s better than expected GDP figures and speculation around Mark Carney’s future as the Governor of the BoE giving sterling a lot to think about. News this morning suggests that Mr Carney is ready to serve the full eight years and will remain in his current post until 2021 with close sources citing determination to steer the UK economy through the uncertain times ahead as motivation to remain in charge.
Elsewhere, oil extended its move lower following objection from Iraq to reduce its own output endangering a potential agreement by other OPEC members to cut supply. Brent and WTI fell by 0.5% and 0.4% respectively as non-OPEC members also failed to make any commitment to limiting production in order to prop up prices.
It’s a busy week for investors and central banks with policy announcements from the RBA, BoJ, FOMC and BoE as well as jobs figures from the US. With little changes to policy expected the accompanying press conferences will provide most interest to participants.