GLOBAL MARKETS-Stocks mixed with U.S. presidential outcome still uncertain

* European stocks open lower on profit taking, virus angst
* Japan's Nikkei hits 29-year high
* U.S. bond yields fall, dollar under pressure
* Oil suffers from COVID-19 worries
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Arnold and Hideyuki Sano
LONDON/TOKYO, Nov 6 (Reuters) - Global stocks were little
changed but near a record high while the dollar and U.S. bond
yields stayed sluggish on Friday on bets that a divided U.S.
Congress would hinder government borrowing, which could pave the
way for even more central bank stimulus.
Investors expect Democrat Joe Biden will beat President
Donald Trump but Republicans will keep control of the Senate,
allowing them to block Democrat policy such as corporate tax
hikes and debt-funded spending on infrastructure.
"From here, we believe the impact of the presidential result
should be relatively small," said Lars Kreckel, global equity
strategist at LGIM. "Whether Biden or Trump are in the White
House, governing with a Congress that is very likely to be
divided would be difficult and mean very little policy that
could significantly move equity markets would be passed."
A sense that a Biden presidency will be more predictable
than Trump's is also underpinning risk sentiment, even though
investors saw no quick rapprochement between the United States
and China on trade and other issues.
Biden had a 253 to 214 lead in the state-by-state Electoral
College vote that determines the winner, according to most major
television networks, putting him closer to the 270 Electoral
College votes needed to win.
In Pennsylvania, which has 20 electoral votes, Biden cut
Trump's lead to just over 18,000 by the early hours of Friday.
His deficit in Georgia, which has 16 electoral votes, shrunk to
about 450.
MSCI's all-country index of the world's 49 markets
.MIWD00000PUS was flat after gains earlier in the week, still
close to the record reached in September.
Europe's main stock index .STOXX opened 0.4% lower, with
investor sentiment dimmed by the economic toll of new lockdowns
in Europe to contain the coronavirus. Italy and France
registered record numbers of COVID-19 cases.
Japan's Nikkei average rose 0.9% .N225 to a 29-year high
while MSCI's broadest gauge of Asian Pacific shares outside
Japan rose 0.3%, near a three-year high. .MIAPJ0000PUS .
U.S. S&P futures ESc1 dropped 0.6%, a day after the
underlying stock index .SPX rose 1.95%.
Trump's attempts to pursue lawsuits challenging elections in
several states have so far done little to change expectations of
the outcome.
Still, some market players are wary of street protests
getting violent, after Trump claimed the election was being
"stolen" from him. U.S. bond yields drifted lower, with the 10-year Treasury
yield US10YT=RR falling to 0.773%, below the pre-U.S. election
level on Tuesday. It had struck a three-week low of 0.7180% on
Thursday. US/
The Federal Reserve kept its monetary policy loose and
pledged to do whatever it takes to sustain a U.S. economic
recovery. With COVID-19 raging in the United States and parts of
Europe, many investors assume more monetary stimulus is
inevitable.
The Bank of England expanded its asset purchase scheme on
Thursday and the European Central Bank is widely expected to
announce more stimulus next month.
Investors also focused on the prospects of stalled talks on
a U.S. coronavirus relief package restarting.
"We still anticipate that there will be a fiscal package in
excess of $1 trillion next year," said James Knightley, chief
international economist at ING Group in New York.
"This stimulus, when combined with a long-anticipated
COVID-19 vaccine, can really lift the economy and drive growth.
We consequently remain very upbeat on the prospects for 2021 and
2022."
In currency markets, lower yields undermined the dollar. The
dollar index touched a two-month low of 92.459 =USD .
The euro traded at $1.1840 EUR= while the offshore Chinese
yuan climbed to 6.6000 to the dollar CNH= .
A weaker dollar supported the Japanese yen JPY= , which
rose to 103.43 yen against the dollar overnight. It was steady
in early European trade at 103.45 yen.
Gold XAU= , which is used as a hedge against inflation in
an era of ultra-loose monetary and fiscal policies, fell 0.3% to
$1,942 per ounce after jumping over 2% overnight. GOL/
Even bitcoin BTC=BTSP rode high, gaining 10% on Thursday
and hitting a high last seen in January 2018.
Oil prices fell as fresh lockdowns in Europe to contain the
coronavirus darkened the outlook for crude demand. Brent crude
LCOc1 was down 1.2% at $40.45 a barrel. West Texas
Intermediate futures CLc1 were down 1.3% at $38.27 a barrel.
O/R

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Stock market from Election Day to inauguration https://tmsnrt.rs/3jSBTjO
Dollar falls to 2-month low https://tmsnrt.rs/2GxqA2M
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