London pre-open: Stocks seen higher as FBI clears Clinton
Stocks in London were set to rack up healthy gains at the open after the FBI cleared Democratic candidate Hillary Clinton over the weekend.
The FTSE 100 was called to open 52 points firmer than Friday’s close at 6,745.
The FBI said it had found no evidence of criminal wrongdoing by Clinton after she used a private email server for government work.
CMC Markets’ Michael Hewson said: “While the timing of FBI director James Comey’s intervention is likely to be a welcome relief for Hillary Clinton, it hasn’t been received as enthusiastically by Donald Trump supporters, who suggested that the FBI had caved to political pressure, probably on the basis of the speed that they arrived at this conclusion since his initial announcement on October 28th, that the case was being looked at again.
“Markets overnight appear to be pricing in this reaffirmation of the FBI position, as the US dollar rebounded and equity markets look likely to follow suit this morning, after both fell heavily last week on fears about the unknown quantity a Trump win would mean.”
In corporate news, HSBC reported that 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.
The FTSE 100 bank lifted revenues and continued to cut costs in the three months to 30 September, said the Brazil sale had seen its common equity tier-1 capital ratio increase to 13.9% and complete almost two thirds of the $2.5bn share buyback announced as a result as well as support the future payment of dividends.
Hammerson has exchanged contracts for the disposal of Westmorland Retail Park in Northumberland to Arch Commercial Enterprise for £36m.
The sale price represents a net initial yield of 5.8% and is slightly below book value as at 30 June 2016.
Technology company Smiths Group has sold its IVF product to US-based multinational CooperSurgical for £140m.
The disposal of the Wallace product, part of Smiths Medical, is part of the FTSE 100 company's strategy to focus its portfolio on market leading positions of scale in its chosen markets, with the proceeds reinvested in the company.