Sunday, November 6, 2016

Overnight

Markets got a boast overnight from the FBI news that noting in Hillary Clinton's private email server search changes their previous findings as Asian shares rose and the U.S. dollar bumped higher. Dow Jones futures leaped 220 points on the news, the Nikkei 225 rebounded 1.59%, the Kospi gained 0.89% and the ASX 200 rallied 0.96%. The Hang Send rose 0.62% and the Shanghai Comosite inched  0.13% higher.

So it's most likely risk on again with investors as they digest the news ahead of Tuesday"s election.
Reuters reported: After the FBI announcement, the Mexican peso rose against the greenback, at 18.6837 compared to levels above 19 pesos last week. The peso is seen as a proxy for Trump's hopes of winning the election, due to his vocal anti-Mexico stance.

"The Canadian dollar and the Mexican peso, the two benchmarks for the election due to their close geographic and economic ties with the US, gained strength as a Clinton White House becomes a symbol for continental trade and prosperity,"one observer noted.

Also on Monday, China will reveal its foreign currency reserves for October.
U.S. crude futures were up 1.11 percent at $44.56 a barrel in Asia, after settling at $44.07 in the Friday U.S. session, while Brent futures rose 0.97 percent to $46.02, after they settled at $45.58.
Oil futures had fallen for the sixth straight session in the U.S. on Friday, on signs of renewed tensions between Saudi Arabi and Iran, which could scupper an output-cut deal being hammered out by Organization of Petroleum Exporting Countries (OPEC) members.

The WSJ noted that nickel prices soared on Monday pushing up broad based gains in base metals owing to the risk on again meme. Three-month nickel prices on the London Metal Exchange jumped 4.1% with tin prices up 3.2% and copper up 0.7%. Nickel rices since the first of the year are now up 45% on the LME. Gold retreated a bit with Spot gold XAU= was down 0.7 percent at $1,295.01 an ounce at 0127 GMT. The metal hit a low of $1,287.86 earlier in the session.








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