World stock markets mixed as balance tilts to Biden in US polls

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

Global stocks held near a record high on Friday while bets that a divided US Congress would hinder government borrowing and potentially pave the way for even more Federal Reserve stimulus kept the dollar and US bonds sluggish.

Markets were also awaiting the release of the US 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 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.