Markets cleared for takeoff | Calamatta Cuschieri

The FBI released a statement reaffirming a previous decision not to investigate Hillary Clinton over the use of a private email server for confidential emails, and the markets couldn’t be happier. In a rally which shows the extent to which the market feared a Trump win, major stock markets chalked up gains of anywhere between 1.5% and 2.5%, breaking a losing streak of several days in some cases.

Safe haven assets, such as core government bonds, gold and the yen dipped in favour of riskier assets. Volatility indices also fell, while the US dollar strengthened as a Democrat victory is seen as keeping an interest rate hike by the US Federal Reserve on track for December.

On the eve of one of the most awaited moments of the year – bar the Brexit vote – market participants have, quite rightly, little care of anything which is not directly related to the US Presidential election.

This is also true about media coverage, and it is no different for us who write for this blog on a daily basis. We’re up to our eyes with polls, stats, voter demographics and scenarios which will no longer be based on assumptions but facts by tomorrow’s dawn's early light.

More problems for Das Automaker

But if you truly must divert your focus away from the battle for land of the free and the home of the brave, you might want to check up on Volkswagen. The German company is facing another hurdle in its recovery efforts as its chairman, Hans Dieter Poetsch, has been named as a suspect in the emission-defeating devices probe led by German prosecutors.

If that wasn’t enough, local newspaper Bild reported that certain Audi models were also bypassing emission controls in certain conditions. A spokesman for Audi declined to comment on the newspaper’s findings citing ongoing negotiations with the authorities.

This article was issued by Andrew Martinelli, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investments Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.