Updated at 04:40 am ET
US Federal Bureau of Investigations director James Comey told Congress on Nov. 6 that the agency would not reopen any investigation into presidential candidate Hillary Clinton’s email usage. The back and forth over Clinton’s emails eroded her polling lead over Trump last week but now the issue seems put to rest and financial markets are feeling the boost.
Voting begins in the US in a little over 24 hours and traders are rebuilding bets Clinton will win. Most major indices opened higher on Monday in Asia, and continued to trade in positive territory throughout the day.
European stock markets joined the rally and S&P 500 futures indicate the US equity index is about the end its longest losing streak since 1980.
The US dollar jumped as much as 1.4% against the Japanese yen, and the Mexican peso, which has served as a proxy for how well Clinton is doing in the presidential race, surged as currency markets opened in Asia. The FBI’s latest statement is “clearly a huge boost to Clinton at the business end of the campaign,” said Jim Reid, a strategist at Deutsche Bank.
Haven assets, which traders buy in times of uncertainty, such as US Treasuries, gold and the Swiss franc all declined on Monday. Investors around the world have been watching the US elections warily, and many have reacted to the prospects of a Donald Trump presidency with horror, concerned about his pledges to tax trade with China heavily and repeal NAFTA, as well other outlandish, economically questionable proposals, and fears that any budget he oversees in the US could be bad for American prosperity.