The Mexican peso and US stock futures rose as investors saw less chance of Republican nominee Donald Trump winning next month’s presidential election, while sterling was under pressure after Friday’s “flash crash” in the British currency.

Futures on the S&P 500 and Dow Jones industrial average were up about 0.4 per cent, suggesting Wall Street will open higher. US stock markets were open yesterday, though the bond market is closed for the Columbus Day holiday

The pound initially dropped half a per cent against a dollar boosted by expectations the Federal Reserve will raise interest rates in December even after weaker than expected jobs data on Friday.

The UK currency, hit last week by concerns about the impact of Britain’s exit from the European Union, later stabilised and last stood at $1.2408, down 0.2 per cent.

Its trade-weighted index, which is only calculated in London trading hours so missed Friday’s tumble, fell 0.7 per cent at one point to its lowest since early 2009.

In early Asian trade on Friday, the pound fell 20 per cent to a three-decade low of $1.1491 in minutes as a drop on investor worry over Brexit snowballed as automated computer trades were triggered.

Concern grew last week that Britain is heading for a ‘hard’ exit from the EU, where it prioritises full control over immigration over access to the bloc’s single market.

Britain’s FTSE 100 rose 0.1 per cent as the internationally-focused companies on the index gain on overseas revenues and competitiveness when the pound fall.

The more domestically-focused FTSE 250 index was down 0.2 per cent and British 10-year government bond yields rose 3.7 basis points to 1.02 per cent.

The pan-European STOXX 600 index rose 0.2 per cent as firmer mining stocks offset the impact of a drop in financial shares. Mining stocks were boosted by a rise in copper prices, with markets in China – the world’s biggest consumer of metals – re-opening after a week-long break.

Another notable mover on currency markets was the Mexican peso, which at one point was up two per cent at 18.91 to the dollar as Mr Trump’s chances of winning the White House seemed diminished after the second pre-election debate with Democratic Party candidate Hillary Clinton.

Mr Trump has vowed to build a wall on the border with Mexico and renegotiate or scrap the North American Free Trade Agreement (Nafta) if he is elected, making the peso somewhat of a barometer of his chances. The Mexican currency was last up 1.9 per cent at 18.97 per dollar.

The dollar rose 0.3 per cent against the euro to $1.1163 and by 0.5 per cent to 103.40 yen.

Oil prices initially fell, with investors sceptical an agreement among members of the Organisation of the Petroleum Exporting Countries (Opec) to cut output would have a major impact, but later reversed course.

Brent crude, the international benchmark, was up 45 cents at $52.38 a barrel and US crude gained 29 cents to $50.10.

Gold last traded at $1,263 an ounce, up 0.6 per cent, lifted by demand from returning Chinese investors.

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