It wasn’t Halloween but the idea of a Trump Presidency that was spooking markets on Monday. Stocks in Europe are feeling the aftershock of US election jitters that struck US markets on Friday when the FBI opened up a new probe into Hillary Clinton’s emails.
The FTSE 100 looks posed to finish its fifth month higher in a row as a lower pound bolsters its multinational listings. The benchmark UK equity index looks set to close in the bottom half of its monthly range as political uncertainty at home and across the pond sees investors press the pause button.
On Monday it was the shares of retailers and homebuilders that were the biggest drag to the FTSE 100 whilst WPP (LON:WPP) shares were on top after the advertising giant reported rising revenues on the back of a weaker Sterling. Retailer Next was the biggest faller ahead of its results this week.
WPP shares rose over 3% after the world’s biggest marketing company reported revenues up 23.4% in the last quarter. Martin Sorrel’s firm had a strong performance in Western Europe in the US, though growth slowed slightly in the UK, the Middle East and Africa. WPP is projecting modest earnings growth based on advertising as a percentage GDP remaining unchanged whilst global growth remains lacklustre.
The FBI has found 650,000 emails on the laptop used by Anthony Weiner and his estranged wife Huma Abedin, an aide of Hillary Clinton and thousands of those emails were potentially used on Hillary Clinton’s private email server. The new finding could reveal many of the emails deleted by Hillary Clinton.
The size of the reaction in US equity indices on Friday to the FBI announcement goes to show how much could hinge on the Presidential election result. The sharp down move in reaction to news that boosts Trump’s chances is a peak preview of what to expect if he takes the White House.
On Monday, US stocks look set for a higher open. Index futures have largely unwound a lot of Friday’s losses since the results of the FBI probe are unlikely to be known for weeks or even months.
USA pre-opening levels
S&P 500: 6 points higher at 2,132
Dow Jones: 40 points higher at 18,201
Nasdaq 100: 24 points higher at 4,829
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