(Updates to U.S. market close)

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US stocks hold gains following Trump election win

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Bitcoin continues surge, hits record high above $87,000

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Brent crude declines 2.5%

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US bond markets closed on Monday

By Lawrence Delevingne

Nov 11 (Reuters) - Wall Street kicked off a busy week on

Monday by holding on to gains from the surge in stocks that

followed Donald Trump's U.S. election victory, while oil prices

declined and bitcoin raced to a new record high.

In U.S. equity markets, the Dow Jones Industrial Average

rose 0.7%, to 44,293, the S&P 500 rose 0.1%,

to 6,001 and the Nasdaq Composite was little changed

at 19,298.

Among the winners: Tesla gained around 9% after

touching $1 trillion in market value on Friday; crypto stocks

such as Coinbase Global, MARA Holdings and

Riot Platforms all surged up 15% or more; and big banks

Goldman Sachs and JPMorgan Chase added around 2%.

Stocks head toward year-end on a solid footing, with the

benchmark S&P 500 index up about 26% year-to-date as AI

enthusiasm and the start of Fed rate cuts support an upbeat

outlook.

Focus will be on U.S. consumer price inflation data on

Wednesday as well as a raft of other data this week for more

indications on the health of the economy and the outlook for

interest rates.

The dollar traded not far from last week's four-month peak

versus other major currencies, with a parade of Federal

Reserve speakers also due to speak this week, including Chair

Jerome Powell on Thursday.

Republicans are edging closer to sweeping both chambers of

Congress, taking the Senate on election night and with Edison

Research projecting them so far to have 214 of the 218 seats

needed for control of the House, compared with 205 for

Democrats.

Investors expect Trump's second four-year term in office

will bring equities-boosting tax cuts and looser regulations.

Scott Bessent, a hedge fund manager, Trump supporter and top

contender to be Treasury Secretary, wrote in an opinion piece on

Sunday that surging markets were "signaling expectations of

higher growth, lower volatility and inflation, and a revitalized

economy for all Americans."

Trump's victory and the election of pro-crypto candidates to

Congress have pushed bitcoin to the new all-time high above

$87,000, spurred by expectations of a lighter regulatory

environment.

Europe's main stock index logged its best day in six weeks

on Monday as the STOXX 600 added 1.13%. Defense stocks

advanced on prospects of higher military spending in Europe

under a Trump U.S. presidency, with investors also awaiting key

economic data this week.

The euro dropped to its lowest level in 6-1/2 months against

the dollar on Monday as investors worried about possible U.S.

tariffs that would hurt the euro area's economy. The single

currency was down about 0.6% at $1.0656.

Lisa Shalett, chief investment officer for Morgan Stanley

Wealth Management, wrote in a note on Monday that while equity

investors have been bullish on the new Trump administration,

"it's been less joyous for bond investors, with yields backing

up sharply midweek over concerns around unfunded tax cuts and

the inflationary impact of proposed tariff and immigration

policies."

U.S. bond markets were closed on Monday for Veterans Day.

DIVERGING FORTUNES

MSCI's gauge of stocks across the globe was

little changed.

Hong Kong shares slipped to a three-week low as China's

local government debt-relief package fell short of investors'

expectations for economic support, while a rally in

semiconductor stocks pulled Chinese markets slightly higher.

China's blue-chip CSI300 Index closed up 0.6%, led

by a 6.8% jump in semiconductor stocks after Reuters reported

the U.S. had ordered chipmaking giant TSMC to halt

shipments of advanced chips to Chinese customers.

Investors figured that would encourage authorities to

support China's industry and bought shares in local makers,

sending Semiconductor Manufacturing International Corp

stock up 4.7% to a record high.

Japan's Nikkei closed up 0.08% as gains were capped

by domestic firms' weak outlook forecasts.

China's National People's Congress Standing Committee

unveiled a 10 trillion-yuan ($1.39 trillion) debt package on

Friday to ease local government financing strains and stabilize

flagging economic growth. However, the stimulus steps lacked the

direct injection of money into the economy that some investors

had hoped to see, particularly amid the threat of massive

tariffs under the incoming Trump administration.

Gold fell 2.3% to $2,622 an ounce, dropping back from

last month's record high of $2,790.15.

Oil prices continued to fall on the expectation that Trump's

pro-drilling rhetoric will increase world supplies. U.S. crude

fell about 3%, while Brent was down 2.5% on the

day.