The latest revelations that FBI is planning to reopen investigations into Hillary Clinton email debacle has sent shock waves down the spines of investors globally and the major Asian markets have reacted negatively to the news. In addition, weak Japanese data and uncertainty over the future course of OPEC and other major oil cartels have dealt a triple whammy and the major Asian markets seem to be reeling under the impact.
What the Clinton email investigation means for the markets?
The Hillary Clinton email investigations refuse to die down as FBI has claimed that it has found possible new evidence in a case unrelated to the past investigations related to Hillary’s Clinton’s decision to use her private email server and devices to exchange highly sensitive work-related emails when she was the US Secretary of State in the Obama administration. The FBI director has termed it “gross negligence” on part of Clinton although he had stopped short of ascribing criminal intentions to the practice.
But discovery of emails exchanged between Hillary and former Congressman Anthony Weiner’s estranged wife Huma Abedin, a close aid of the Clintons has now brought new evidence to light. The laptop seized from Weiner in a sex scandal and which has over 650000 emails, is also believed to have been used to send and receive thousands of emails to Hillary’s private server. Whether, information of classified nature was shared, is now the subject of investigation.
World markets, most of which are expecting a Clinton victory at the polls next week reacted negatively because they believe this will give Donald Trump some respite and could wipe out Clinton’s perceived lead over the Republican Presidential Candidate. That is why there are fears that the latest revelations could throw Clinton out of the race or keep future FBI investigations hanging over her head, even if she wins the elections, potentially leading to turbulent and unstable presidency.
What the weak Japan data and weak oil price trend means for the markets?
Japanese data released by the Japanese Ministry of Economy, Trade and Industry shows weakness in the economy and sluggish growth amidst a global slowdown. The report also shows that September retail sales have fell for the seventh straight month and is down 1.9% Y-O-Y.
Although there were some bright spots, the country is still not out of the grasp of slowdown and the two-day monetary policy convention being held by the Bank of Japan is not expected to present many positive surprises that could uplift sentiment.
Compounding these woes is the lack of clarity on whether oil production would be controlled to fight the global glut that has seen it fall to historic lows and no concrete commitments have emerged from a meeting being held between OPEC and non-OPEC oil producing countries.
However, better than expected US GDP data provided a much needed shot-in-the-arm for the markets and the decision to thwart the deliberate Chinese currency devaluation has uplifted the mood of Chinese investors. One can expect a continuation of mixed economic performance in the coming days amidst volatility.