Risk Appetite Returns After FBI Clears Hillary Clinton of Criminal Charges

(Kitco News) – The big development for the world marketplace on Monday is the weekend news the FBI has cleared U.S. presidential candidate Hillary Clinton of any criminal charges regarding her personal email server. World stock markets and the U.S. dollar rallied and gold prices and the Japanese yen sold off Monday, following that news.

Risk appetite is back in the marketplace just one day ahead of the U.S. election. U.S. stock indexes are pointed toward sharply higher openings when the New York session begins.

Most believe the FBI's closure of the email case, again, puts Clinton in a better position to win the presidency over Donald Trump, who is perceived by traders and investors worldwide to be the bigger unknown. Last week, global equity markets saw significant selling pressure as polls showed Trump dramatically closing the gap with Clinton, after the FBI had indicated it could reopen the email case on Clinton.

The crude oil market rebounded Monday, on short covering and bargain hunting following strong selling pressure seen last week. Nymex crude oil prices are trading just below $45.00 a barrel after dropping to a nearly three-month low of $43.57 last Friday.

In other overnight news, the Euro zone retail sales report for September came in down 0.2%, month-on-month and up 1.1%, year-on-year. The reading, while still very week, was better than the consensus forecast.

U.S. economic data due for release Monday includes the employment trends index and consumer installment credit.

Overnight, during the Asian session, rising risk sentiment pushed spot gold prices, on Kitco.com, below $1,300 an ounce. Prices traded in a range between $1,292.10 an ounce and $1,283.50 an ounce.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

Follow Jim Wyckoff @jimwyckoff for breaking market news.