Global markets fall on nail-biting US election

Jitters over the US presidential elections drove equities markets lower Monday on both sides of the Atlantic.

Markets were still absorbing Friday's surprise news from the US Federal Bureau of Investigation, less than two weeks before election day, that it was investigating additional emails connected to Democratic nominee Hillary Clinton, Wall Street's preferred candidate.

In Europe, Paris's CAC 40 lost 0.9 percent. London's FTSE 100 fell 0.6 percent and the DAX 30 in Frankfurt was down 0.3 percent. Madrid, Rome and Amsterdam likewise drifted down, while Milan fell 1.15 percent.

It was "the idea of a Trump presidency that was spooking markets on Monday", said CMC Markets analyst Jasper Lawler.

"Stocks in Europe are feeling the aftershock of US election jitters that struck US markets on Friday."

In New York, where stocks had fallen Friday on the FBI news, the blue-chip Dow Jones Industrial Average ended down 0.1 percent in Monday's session, while the broader S&P 500 and tech-heavy Nasdaq were both essentially flat.

"As we get closer to the election, more questions come up. So people are starting to hedge their volatility risk. Anything can happen and people are really starting to hedge themselves," said JJ Kinahan, chief market strategist at TD Ameritrade.

"The VIX is up for five days in a row and the VIX is up for a reason," he said, referring to an indicator of market volatility.

Two big deals also played into the markets.

Level 3 Communications jumped 3.9 percent on news it will be bought by CenturyLink for $34 billion. CenturyLink, the third largest US telecommunications carrier, tumbled 12.5 percent.

Baker Hughes sank 6.3 percent after it agreed to merge with GE's oilfield business, with GE garnering control of the venture in exchange for $7.4 billion in dividend payments to Baker shareholders. GE also fell 0.4 percent.

The US political news filtered through to Asia as well, where dealers also are nervously awaiting a series of key events this week, including central bank policy meetings in Japan and the US and the release of US jobs figures Friday.

Oil prices also fell, dragging energy firms lower, following OPEC's failure last week to hammer out details of an agreement to cut output and ease a supply glut.

Key figures at 2100 GMT

New York - Dow: DOWN at 18,142.42 (close)

New York - S&P 500: FLAT at 2,126.15 (close)

New York - Nasdaq: FLAT 5,189.13 (close)

London - FTSE 100: DOWN 0.6 percent at 6,954.22 points (close)

Frankfurt - DAX 30: DOWN 0.3 percent at 10,665.01 (close)

Paris - CAC 40: DOWN 0.9 percent at 4,509.26 (close)

EURO STOXX 50: DOWN 0.6 percent at 3,055.25 (close)

Tokyo - Nikkei 225: DOWN 0.1 percent at 17,425.02 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 22,934.54 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,100.49 (close)

Euro/dollar: DOWN at $1.0981 from $1.0987 Friday

Dollar/yen: UP at 104.82 from 104.73

Pound/dollar: UP at $1.2242 from $1.2187

Euro/pound: DOWN at 89.70 pence from 90.16 pence

Oil - West Texas Intermediate: DOWN $1.84 at $46.86 per barrel

Oil - Brent North Sea: DOWN $1.41 at $48.30