Monthly Archives: October 2016

Stocks slide and gold jumps after the FBI says it’s investigating Clinton’s emails again

By Max Ehrenfreund

Investors rushed to sell their assets in equity and currency markets Friday afternoon after the Federal Bureau of Investigation said it was looking into Hillary Clinton’s emails again. The revelation seemed to cause fluctuations in prices for a range of securities and commodities in the United States and overseas.

Shares in the Standard & Poor’s 500-stock index declined about 1 percent immediately after 1 p.m., when a letter from FBI Director James B. Comey to lawmakers detailing the continuing investigation became public. Comey had previously said that the FBI had completed its investigation.

Prices in the Nasdaq Composite index gave up 0.9 percent, while the Dow Jones industrial average declined 0.8 percent.

Whoa. Is this SPX reacting to Clinton emails FBI investigation?

— Dani Burger (@daniburgr) October 28, 2016

Analysts and experts noted several reasons that markets might have sold off on the news. One argument is that investors think markets would do better under Clinton as president than under her Republican rival, Donald Trump.

Trump has said he would deport large numbers of illegal immigrants, increasing the cost of labor in the United States, and that he would impose tariffs on Mexican imports. Both policies could result in steeper prices for goods and services in this country.

Traders unloaded Mexican pesos after the news, driving the price of the currency in dollars down 2 percent, from 5.3 cents per peso to 5.2 cents. Many traders are concerned that if Trump is elected and imposes tariffs on Mexico, Americans will purchase fewer Mexican imports and the demand for pesos with which to buy Mexican goods will decline.

Look at the Mexican peso after news …read more