FBI exonerates Clinton, dollar rallies, markets jump, what people are talking about

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FBI says there's nothing new in Weiner e-mails, the dollar strengthens — except against the peso — and Theresa May has a difficult trip to India. Here are some of the things people in markets are talking about today.

FBI absolves Clinton

The election campaign served up one more twist yesterday when FBI Director James Comey sent another letter to Congress stating that an investigation of the e-mails found on Anthony Weiner's laptop wouldn't prompt the organization to change its July conclusion that Clinton had committed no crime in her handling of e-mails while Secretary of State. Comey's letter in October informing Congress of the existence of the Weiner laptop haul saw Clinton's large lead in polls fall, and markets price in a higher chance of a Trump presidency. With election day tomorrow, investors will not have long to wait to see if the second letter has helped unwind that damage.

Dollar rallies

The release of the second letter has seen a rally in the dollar against all major currencies, with the Mexican peso — viewed as a proxy for a Trump victory — the one stand-out exception. Gold, which had rallied beyond $1300 an ounce last week, tumbled more than $20 this morning, dropping to $1284.72 by 5:14 a.m. ET. 

May's troubles

British Prime Minister Theresa May is on a three-day visit to India, and is not getting things her way as she clashed with her Indian counterpart Narendra Modi over immigration controls, and failed to organize a meeting with senior figures at Tata Group. Meanwhile, back in the U.K., there was some good news as house prices grew by 1.4 percent in October from a month earlier. 

Markets rise

Overnight, the MSCI Asia Pacific Index climbed 0.5 percent as risk appetite returned in the wake of the FBI letter. Japan's Topix index jumped 1.2 percent as the yen dropped against the dollar. In Europe, the Stoxx 600 Index was 1.2 percent higher at 5:19 a.m. ET, with gains led by HSBC Holdings Plc after it announced a surprise jump in profits. S&P 500 futures rallied 1.5 percent. 

Oil rebounds 

Oil futures jumped 1.6 percent amid the broader market rally, with a barrel of West Texas Intermediate for December delivery rising to $44.75 by 5:30 a.m. ET. OPEC Secretary General Mohammed Barkindo said Russia, the world's biggest energy producer, is “on board" with an agreement to limit crude oil production. In the U.S., the Colonial gasoline pipeline was successfully restarted yesterday, six days after it was closed by an explosion. Cushing, Oklahoma, one of the main hubs for oil in U.S. was hit by a 5.0 magnitude earthquake last night, although no immediate damage to oil infrastructure has been reported. 

What we've been reading 

This is what's caught our eye over the weekend.

• Odd Lots Podcast: Why we stopped trusting experts.
• China flexes legal muscle to quash Hong Kong independence calls.
• Brexit scarier than Trump for $51 billion bond fund manager.
• Chinese investors are in love with U.S. dollar debt.
• Obama's successor inherits bond market at a huge turning point.
• Don't worry when the stock market goes crazy after the election.
• Janet Reno, former U.S. Attorney General, dies at 78. 

To contact the author of this story: Lorcan Roche Kelly in Dublin at lrochekelly@bloomberg.net.

To contact the editor responsible for this story: Joe Weisenthal at jweisenthal@bloomberg.net, Isobel Finkel