Dow Jones gains more than 300 points ahead of US elections

The day before the elections, equity prices in the US extended gains during the last hours sending the Dow Jones further to the upside. The index was gaining 330 pips or 1.89% while the Nasdaq was up 2.30% and the S&P 500 2.02%. 

In a few hours main indexes erased last week losses and are back at the levels, it had a week ago. The Dow Jones was again near the 18,250/70 area that became a key short-term resistance that capped the upside, during the previous three weeks. 

Risk appetite surged after the FBI said during the weekend that new emails won’t lead to charges against Hillary Clinton. Also the latest polls showed the Democratic Party Candidate leading, boosting equity prices further to the upside. 

Gold prices were falling almost 2%. The ounce was trading at $1280, $25 below the level it closed on Friday. In the bond market, US yields were rising, with the 10-year at 1.825%. 

In the currency market, the Mexican peso was the best performer on the back of the FBI story. While on the opposite, the Yen was falling across the board with  USD/JPY trading at 104.65, up 150 pips from Friday’s levels. 

To learn more about  US elections, check our video analysis.