Europe open: Stocks rally as FBI clears Clinton

European stocks rallied in early trade as investors welcomed news the FBI cleared Democratic candidate Hillary Clinton of any wrongdoing over the weekend and amid encouraging corporate releases.

At 0830 GMT, the benchmark Stoxx Europe 600 index was up 1%, while Germanys’ DAX and France’s CAC 40 were 1.2% firmer.

Meanwhile, oil prices pushed higher, with West Texas Intermediate up 1.5% to $44.71 a barrel and Brent crude up 1.2% to $46.14.

The FBI said over the weekend that a fresh inquiry into Clinton’s communications found nothing to change the conclusion it had come to over the summer and that there had been no evidence of criminal wrongdoing after she used a private email server for government work.

Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, said: “In yet another extraordinary twist in what has already been the most dramatic US election campaign ever, the clearing of Clinton has seen confidence return to equity markets and safe havens slump, as the market starts to price in a Hilary victory.

“However, while the polls have widened and the expectation is that the US electorate will deliver a Trump defeat, many investors are still sitting on significant levels of cash as the possibility of a surprise Brexit-like result is simply too risky to contemplate - with the upside potential of a Clinton victory markedly lower than the downside risk of a Trump win.”

In corporate news, HSBC racked up strong gains as it said profits in the third quarter fell 86% compared to last year due to a disposal of its Brazilian bank, but underlying profits were higher in all four of its businesses.

Dutch postal group PostNL rallied after rebuffing a sweetened takeover offer from Belgian rival Bpost.

Ryanair flew higher after the budget airline reported a rise in first-half profit as revenue and customer numbers grew despite difficult market conditions, and upped its long-term traffic forecast.

Informa was in the black after the business intelligence group said it was on track to meet full-year expectations.

Hammerson edged up after it exchanged contracts for the disposal of Westmorland Retail Park in Northumberland to Arch Commercial Enterprise for £36m.

Technology company Smiths Group ticked higher as it sold its IVF product to US-based multinational CooperSurgical for £140m.

Hiscox advanced after reporting a 14.3% jump in gross written premiums for the first nine months of the year.

Inmarsat rallied after Barclays upgraded its stance on the satellite company to ‘equalweight’ from ‘underweight’.

On the data front, figures from Destatis showed Germany manufacturing orders fell 0.6% on the month in September, versus expectations of a 0.2% increase. On the year, orders were up 2.6%.

Still to come, eurozone retail sales for September are due at 1000 GMT.