News that the FBI is again investigating Hilary Clinton's emails has markets nervous although not yet pricing a Trump victory. This sees the S&P hovering around but holding above key support. However, a sharp jump in copper and more gains in iron ore are making it hard for traders to sell mining stocks
There seems little doubt that a Trump victory would trigger selling in stock markets from current levels. This has traders nervous as they start the week assimilating fresh news on Hilary Clintons email problems. Markets continue to assume a Clinton victory but are likely to be wary of pushing prices too much higher until there is greater clarity on whether news of whether there is any substance to the FBI email investigation or if it is having any material impact on polls.
From a technical point of view this is may mean that the key US S&P 500 will hover in the vicinity of key chart support just above 2100.
Apart from the Clinton news, traders have other reasons to be cautious. This week will see a number of key news events including the November FOMC meeting; international PMI data and the latest US employment statistics.
Today could be a repeat of Friday when support for mining stocks helps put a floor under the local market. Further gains in iron ore and a strong jump in the copper price will again create doubts about whether traders can sustain a bearish view on this sector.
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