REFILE-GLOBAL MARKETS-Stocks bide time as U.S. election caution sets in

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* European stocks boosted by Q3 earnings
* Euro zone bond yields inch lower
* U.S. debate creates few surprises
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Tom Arnold and Hideyuki Sano
LONDON/TOKYO, Oct 23 (Reuters) - Global stocks remained
within a tight range on Friday, less than two weeks before the
U.S. presidential election, with traders looking for a
breakthrough in stimulus talks in Washington.
The final debate between U.S. President Donald Trump and his
Democratic challenger Joe Biden on Thursday provided few
surprises. European stocks .STOXX pushed 0.8% higher for their best
day in five trading sessions. Strong third-quarter results
offset key business survey data showing patchy recoveries across
the euro zone's two largest economies, Germany and France.
Britain's main stock index .FTSE added 1.1% as Barclays
BARC.L reported stronger-than-expected third-quarter earnings
and British retail sales beat expectations in September.
The chief negotiators for Britain and the European Union
were set to meet on Friday for talks on a last-gasp trade deal
to avert a tumultuous finale to the five-year Brexit crisis.
U.S. S&P 500 futures ESc1 were up 0.1%, after dipping
following the debate. The underlying index had gained about 0.5%
the day before on hopes the U.S. Congress and the White House
would soon strike a deal on another round of COVID-19 stimulus.
Shares in Asia hardly moved, with MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS 0.1% lower.
Japan's Nikkei .N225 ticked up 0.2%. The CSI300 index of
mainland China .CSI300 shed 1.3%.
The MSCI world equity index .MIWD00000PUS, which follows
shares in nearly 50 countries, was up 0.2% and set for its
biggest weekly fall in a month.
At Thursday's debate, Biden renewed his criticism of Trump's
handling of the coronavirus pandemic as Trump levelled unfounded
corruption accusations at Biden and his family.
"The market is not going to change significantly in the
short term," said Francois Savary, chief investment officer at
Swiss wealth manager Prime Partners.
"There is no reason for markets to take big long positions
as we have the election in less than 10 days, and combined with
COVID-19 uncertainty it's a time where people will take a step
back and wait for election developments before taking a bet on
the markets."
A widening lead in polls by Biden is prompting many
investors to bet on a Biden presidency and a "blue sweep", where
Democrats win both chambers of Congress.
While Democratic plans to raise taxes on corporate profits
and capital gains could hit share prices, their pledge on large
stimulus is seen as offsetting those blows.
Clean energy is seen as a potential winner at the expense of
conventional energy under a Biden presidency. The Dow Jones oil
and gas index .DJUSEN is down nearly 49% this year. Biden
reiterated his campaign pledge of net-zero-emissions by 2050.
The Nasdaq index .IXIC , which had led the market's rally,
has underperformed lately, losing 1.4% so far this week, on
concern Democrats will take a harder stance on big tech firms.
"A blue wave may lead to concerns about the impact on the
tech sector, while a Biden win and a split Congress may imply
another four years of limited policy changes and politicking,"
said Mary Nicola, senior economist at Pinebridge Investments in
Singapore.
Expectations of bigger government stimulus have also boosted
U.S. borrowing costs. The 10-year U.S. Treasuries yield
US10YT=RR rose to a four-and-a-half-month high of 0.870% on
Thursday and last stood at 0.853%.
U.S. House of Representatives Speaker Nancy Pelosi reported
progress in talks with the Trump administration for another
round of financial aid, saying legislation could be hammered out
"pretty soon". In the euro zone, bond yields inched lower after the latest
monthly purchasing managers' index (PMI) data showed the impact
of the second wave of COVID-19 infections in Germany and France.
France saw business activity contract in October. German
manufacturing rebounded, but its services dipped.
German 10-year bond yields DE10YT=RR , the benchmark for
the bloc, inched lower to -0.57%. French 10-year borrowing costs
FR10YT=RR dropped a similar amount to -0.29%.
In currency markets, the dollar was 0.03% lower against a
basket of currencies =USD early in Europe, shy of a seven-week
low hit on Wednesday.
The euro EUR= was unchanged against the dollar at $1.1818,
So was sterling at $1.3084. The Chinese yuan stood at 6.6767 per dollar in offshore
trade CNH= , off a 27-month high of 6.6278 on Wednesday.
Oil prices eased. O/R Brent futures LCOc1 dropped 0.1%
to $42.41 per barrel. U.S. crude futures CLc1 shed 0.2% to
$40.57 per barrel.
Gold was steady, with spot gold XAU= little changed at
$1,903.36 per ounce. GOL/

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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