– This is the script of CNBC's news report for China's CCTV on November 1, Tuesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
The unexpected announcement Friday that the FBI would review further emails from Democratic candidate Hillary Clinton in connection with its investigation into her use of a private email server is the "October surprise" that could throw the electoral race off course, according to a team of Citi analysts led by Chief Global Political Analyst Tina Fordham.
U.S. equities closed around breakeven on Monday, after gyrating between slight gains and losses as an investigation into new Hillary Clinton emails kept investors on edge.
At this point, the market is almost priced in with certainy that Clinton is gonna win the campaign so we are starting to see some followups when Trump actually picks up some steam that the market starts to come off, according to analyst.
[HUGH JOHNSON, Hugh Johnson Advisors, Chairman and Chief Investment Officer] "The reason you saw a downward drift to the market is nobody is dead sure either one of those. The uncertainty is cripping to the market and show up in the market. That's why we get a fairly stable market but a little bit of downward drift."
Clinton's lead over her Republican counterpart, Donald Trump, has narrowed significantly since Friday's news broke, according to data from RealClearPolitics.
According to NBC's poll, in a 4-way race, Hillary's team is still leading by 6%. This gap has fallen from 11% in mid-Oct.
[BRIAN PEERY, Hennessy Funds, Co-Portfolio Manager of the Hennessy Cornerstone Mid Cap 30 fund] "If he does pick up some more votes and he does narrow the gap, I would expect the market to pull back, but right now I think its just waiting game for the FED and waiting game for Nov 8 and I think it pretty much cooked in the books at this point."
According to Ron William, Founder & Principal Market Strategist at RW Market Advisory, the impending presidential election will create an anomaly to normal market moves as investors pull back from risk exposure around the November 8 vote and the current environment will disrupt the usual inverse relationship between the U.S. dollar and the precious metal.
"Traditionally yes, the inverse correlation has always been there. But there are exceptions and I think this is when it depends on the timing of the move, but also the cause. In this case it will be more of a safe haven flow argument, the U.S. dollar in particular, given what might happen around the election cycle," he told CNBC's Squawk Box Europe.
CNBC Qian Chen, reporting from Singapore.