Global market-stock gains, bond yields jump to potential democratic control of the US Senate

* US stocks rise in afternoon trade

* Oil prices rise

* Gold prices fall (updated with European shares)

NEW YORK, Jan 6 (Reuters) – Global stock indexes climbed and 10-year US Treasury yields topped 1% for the first time since March on Wednesday as Georgia Senate Democratic election more likely after the Senate election Appeared

The S&P 500 and the Dow were each up more than 1% as investors bet financial and industrial stocks that a Democrat-controlled Senate would lead to more fiscal stimulus and infrastructure spending.

The Nasdaq was even higher, but under Democratic control the technology was weakening the other two major US indices over fears of increased regulatory scrutiny of the mega-cap.

“Investors are trying to figure out how quickly Democrats will be able to implement their tax agenda when they take control of the Senate, and whether they will be likely to act on regulation on big technology,” said Quincy Crosby of Key Markets . Strategist at Prudential Financial in New Jersey, New Jersey.

Democrats won one U.S. Senate race in Georgia and led in another, moving closer to sweep in a deep South state would give them the power to pursue the policy goals of both the Houses of Congress and President-elect Joe Biden. The final result is not expected until Wednesday.

The Dow Jones Industrial Average rose 602.71 points or 1.98% to 30,994.31, the S&P 500 rose 55.09 points or 1.48% to 3,781.95 and the Nasdaq Composite added 85,99 points or 0.67% to 12,904.65.

The pan-European STONEX 600 index gained 1.36% and MSCI stock rose 1.14% worldwide.

Bond yields coincided with increasing prospects for further economic stimulus measures. The price of the benchmark 10-year notes fell 28/32 to yield 1.0473% from 0.955% late Tuesday.

In the money market, the dollar sank to its lowest level in nearly three years.

The dollar index rose 0.026% to 0.12% to $ 1.2309.

Oil prices were higher, with Brent crude up 1.9% at $ 54.63 per barrel and US crude futures up nearly 2% at $ 2.93. Spot gold fell 2.1% to $ 1,907.86 an ounce.

Reporting by Caroline Valatevich in New York; Additional reporting by Caroline Cohan in London and Medha Singh, Devik Jain and Sagarika Jaisinghani in Bengaluru; Editing by Alex Richardson, Alison Williams, Hugh Lawson and Sonya Hepast


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