* European stocks lower on profit taking, virus angst
* U.S. futures point to lower Wall Street opening
* Japan's Nikkei hits 29-year high
* U.S. bond yields steady, 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 held near a
record high on Friday while bets that a divided U.S. Congress
would hinder government borrowing and potentially pave the way
for even more Federal Reserve stimulus kept the dollar and U.S.
bonds sluggish.
Markets were also awaiting the release of the U.S. non-farm
payrolls report for October later in the session.
Investors expect Democrat Joe Biden will beat President
Donald Trump but that Republicans will keep control of the
Senate, allowing them to block Democratic policies 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."
MSCI's all-country index of the world's 49 markets
.MIWD00000PUS was 0.1% up, smaller gains than earlier in the
week but still close to the record reached in September. The
index is on course for its best week in nearly seven months.
Biden took a narrow lead over Trump in the battleground
state of Georgia early on Friday and 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.
A sense that a Biden presidency will be more predictable
than Trump's is underpinning risk sentiment, even though
investors saw no quick rapprochement between the United States
and China on trade and other issues.
Europe's main stock index .STOXX was 0.5% lower on Friday
as investors fretted about the economic toll of new coronavirus
lockdowns in Europe and data showing German industrial output
rose less than expected in September. 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 0.7%, a day after the
underlying stock index .SPX rose 1.95%.
U.S. bond yields were broadly steady, with the 10-year
Treasury yield US10YT=RR at 0.775%, below the pre-U.S.
election level on Tuesday. It had struck a three-week low of
0.7180% on Thursday. US/
Bond markets in general were subdued ahead of the payrolls
numbers, which are expected to show the smallest gain last month
since the jobs recovery started in May, although Italy's 10-year
yield hit a record low on expectations of further stimulus.
The 10-year BTP yield was down 2.3 basis points at 0.610%
IT10YT=RR , having earlier fallen to a historic low of 0.603%.
With COVID-19 raging in the United States and parts of
Europe, many investors assume more central bank stimulus is
inevitable.
The Bank of England expanded its asset purchase scheme on
Thursday, while the Federal Reserve kept its monetary policy
loose and pledged to do whatever it takes to sustain a U.S.
economic recovery. 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,
whose index touched a two-month low of 92.459 =USD .
The euro, which has risen this week on dollar weakness and
hopes of a European Union budget deal, traded at $1.1840 EUR=
while the offshore Chinese yuan climbed to 6.6000 to the dollar
CNH= .
The greenback fell further against the Japanese yen, trading
near an eight-month low at 103.23 yen JPY=D3 .
Gold XAU= , which is used as a hedge against inflation in
an era of ultra-loose monetary and fiscal policies, was little
changed at $1,947.31 per ounce ounce. GOL/
Oil prices fell as fresh lockdowns in Europe to contain the
coronavirus darkened the outlook for crude demand. Brent crude
LCOc1 was down 2.8% at $39.80 a barrel. West Texas
Intermediate futures CLc1 were down 3.1% at $37.60 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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