World, Global Markets News Today: Know about Asian Stocks, DAX, CAC40, FTSE, S&P 500, Dow Jones Industrial Average, Nasdaq and more

World, Global Markets News Today: Asian stocks were mixed Tuesday ahead of the US midterm elections, with trading likely to stay bumpy in a week that brings new inflation data and other events that could shake markets. Germany's DAX added 0.1% to 15,543.08, while the CAC40 in Paris slipped 0.4% to 6,390.14. In London, the FTSE 100 fell 0.4% to 7,274.37.

S&P 500; Dow Jones Industrial Average

The future for the S&P 500 lost 0.3% while that for the Dow Jones Industrial Average was 0.2% lower. On Monday, the benchmark S&P 500 rose 1% and the Dow industrials 1.3%. The Nasdaq composite added 0.9%.

The week is full of potentially market-moving events, including US inflation data and the election, which could leave the US government split between Democrats and Republicans.

For Tuesday, at least, "Look for markets to trade political headline spin rather than substance," Stephen Innes of SPI Asset Management said in a commentary.

Every seat in the US House of Representatives is up for election this year, along with about a third of the US Senate. On the line is control of both houses of Congress, currently under Democratic leadership.

Voters are also electing governors in most of the states. They'll be in office in 2024 when the next presidential election happens and could affect election laws or vote certifications. Many state legislative and local authorities also are on the ballot.

A divided government would likely bring gridlock rather than big, sweeping policy changes that could upset tax and spending plans. Historically, when a Democratic White House has shared power with a split or Republican Congress, stocks have seen stronger gains than usual.

Analysts say a strong performance by Democrats in the elections could lead to increased spending to help the economy that might fuel inflation and leave the Federal Reserve obliged to continue to hike interest rates to get prices under control.

Higher rates put slow the economy by making it more expensive to buy a house, car or anything else on credit, though they take time to take effect. Rate hikes could bring a recession, and they tend to drag on prices for stocks and other investments.

With economists forecasting recessions for many economies as an inevitable side effect of the effort to quash inflation, sharp cutbacks in spending might hurt, rather than help, some analysts say.

"On the one hand, the prospect of less spending could be viewed as aiding the inflation fight but on the other, the economy could be headed for recession, and inaction in government won't help the situation," Craig Erlam of Oanda said in a report.

It may take a while to get clarity because of the process to count votes that came in through the mail.

In Asia on Tuesday, Tokyo's Nikkei 225 gained 1.3% to 27,872.11 on strong earnings reports. The Kospi in Seoul advanced 1.2% to 2,399.04 and Australia's S&P/AXS 200 gained 0.4% to 6,958.90.

Hong Kong's Hang Seng sank 0.2% to 16,557.31, while the Shanghai Composite index shed 0.4% to 3,064.49. Thailand's SET gained 0.5%. India's markets were closed for a holiday.

Economists expect a US government report on Thursday to show the consumer price index rose 8% in October from a year earlier, slightly lower than September's 8.2% inflation rate.

A fourth straight month of moderating inflation from June's peak of 9.1% could give the Federal Reserve leeway to loosen up a bit. The Fed has said it may soon dial back its rate hikes to half a percentage point, after it pushed through four straight mega increases of three-quarters of a point.

Earnings reports are also causing share prices to swing.

The reporting season for summertime profits is roughly 85% done, and S&P 500 companies are on track to deliver growth of a little more than 2%. Analysts are forecasting a drop in S&P 500 profits for the final three months of the year, of nearly 1.5%.

US benchmark crude oil

In other trading, US benchmark crude oil lost 94 cents to $90.85 per barrel in electronic trading on the New York Mercantile Exchange. It lost 82 cents to $91.79 per barrel on Monday.

Brent crude

Brent crude, the international pricing standard, gave up 74 cents to $97.18 per barrel.

US dollar

The US dollar slipped to 146.39 Japanese yen from 146.