2016 Elections: Signal Disturbed
American elections, the strangest and harshest in recent history, are coming to an end in just few days when American electorate will decide who will be the next US president. Nonetheless, the election process seems having not reached its peak in terms of “external perturbation”. Firstly, the leaked tape with Trump’s comment on women, then the massive Russian (according to US agencies) cyber-attack and Assange’s WikiLeaks, and lastly the “unprecedented” interference of the FBI in a critical moment for the candidates and their campaigns.
James Comey, appointed Director of the FBI under the Obama administration, over-ruled a precise order from the Department of Justice to avoid any communication with the Congress regarding Clinton’s mail investigation. The FBI Director sent on Friday a letter to the Congress in which he communicated that the investigations will be reopened on the basis of new findings. Hillary Clinton called this move: “unprecedented” and very recently, Republican Senator Charles E. Grassley from Iowa expressed serious concerns about the foundation and the significance of Comey’s findings: “Unfortunately, your letter failed to give Congress and the American People enough context to evaluate the significance or full meaning of this development”. Nonetheless, the campaign had already been deeply influenced. New polls suggest that the distance between the two candidates has dramatically decreased.
Financial markets do not like uncertainty and on Friday, during the second part of the trading session when European markets were already closed, Comey’s declarations, offset gains and optimism triggered by GDP results above expectations: 2.9% YoY. Yesterday, all major European indexes reported losses and the DJI closed at 18142, -0.1%. One thing is sure, we should brace for much more volatility and downward pressures.