After FBI director James Comey notified Congress yesterday afternoon that Hillary wouldn’t be facing an indictment, Dow futures soared 200 points and the dollar rallied:
“Stocks, oil and the dollar jumped Monday, while gold and the yen sold off after the FBI said no new evidence was found to warrant charges against presidential candidate Hillary Clinton.
Investors largely interpreted the news as enhancing Mrs. Clinton’s chances of winning in this week’s race as well as removing an element of uncertainty in the event she is elected.
The Dow Jones Industrial Average added 275 points, or 1.5%, to 18163 shortly after the opening bell. The S&P 500 gained 1.5%, on track to end its longest losing streak in nearly 36 years, and the Nasdaq Composite rose 1.6%. …
The Mexican peso, which has tended to move inversely to the probability of Donald Trump winning the election, jumped 2.1% against the dollar.
Just as the Mexican peso has been ebbing and flowing with Mr. Trump’s prospects, so too have the perceived chances of a December rate rise, Ms. Zentner said.”
Amazing, isn’t it?
Hillary’s campaign is supposed to be about Trump’s racism and misogyny. In reality though, Hillary’s campaign is joined at the hip with the future of the oligarchy, with Wall Street, with the Trans-Pacific Partnership and free-trade, with the big banks and billionaire class, open borders and foreign alliances. The dollar rises and falls on her poll numbers. Mexico’s currency, the peso, rises and falls with Hillary’s fortunes!
As Trump has said, trillions of dollars are riding on the outcome of this election. The global power structure is threatened by a Trump victory. If Trump is defeated, it will be a huge victory for Wall Street and the Davos globalization crowd.
Note: BTW, this what eerily reminiscent of what happened in the UK on the eve of BREXIT. Leave was down in the polls. The pound was rising and the FTSE was rallying. The Remain campaign was about anti-racism. The defeat of the Remain campaign hammered the pound and triggered a sell off in financial markets. It was a big surprise when Leave triumphed. Even Nigel Farage was convinced Leave would lose.
We will see.