LONDON — Europe’s major markets bounced in midmorning trading on Monday, after the FBI cleared Hillary Clinton for the second time following the latest investigation into her e-mails.
The FTSE MIB in Milan led the upswing, climbing 1.9 percent to 16,626.80; followed by the CAC 40 in Paris, 1.6 percent to 4,448.37, and the DAX in Frankfurt, 1.5 percent to 10,415.98. The FTSE 100 in London was up 1.3 percent to 6779.50.
The euro traded at $1.11, while the pound fetched $1.25 and the Swiss franc equaled $1.03 at 11:50 a.m. CET.
European investors are clearly hoping for a Clinton win: In a report published last week, Luca Solca, managing director of Exane BNP Paribas, argued that Trump winning the U.S. elections would be a double whammy for European luxury goods.
If Trump is elected, Solca foresees a higher probability of a dollar devaluation as well as downward pressure on asset prices, “producing negative wealth effects throughout the world, an obvious negative for all global luxury names.”
Retail and luxury stocks were uneven, with the morning’s biggest gainers including Hugo Boss, 2 percent to 59.61 euros; Burberry Group, 2.9 percent to 14.56 pounds; Swatch Group, 2.6 percent to 57.95 Swiss francs, and Compagnie Financière Richemont, 2.2 percent to 67.80 Swiss francs.
Among the stocks that lost the most ground in midmorning were online retailer Boohoo.com, 4 percent to 1.16 pounds; Zalando, 2.6 percent to 37.47 euros, and Ted Baker, 1.2 percent to 24.82 pounds.