A look at the day ahead in European and global markets from

Ankur Banerjee

With President-elect Donald Trump's Republican Party looking

likely to claim a majority in both chambers of Congress, the

so-called Trump trades are showing no signs of easing.

Bitcoin's blistering rally rages on as the world's best

known cryptocurrency scaled yet another record peak close

to $90K while the dollar rose to a four-month high against major

rivals.

Data provider DDHQ projected that the Republican Party had

won a majority in the U.S. House of Representatives. Edison

Research has not yet projected House control.

Republicans had already secured a U.S. Senate majority of at

least 52-46, Edison Research projected.

The control of both houses will provide the incoming

administration the tools to pass legislation and follow through

on fiscal policies, with investors anticipating tax cuts and

looser regulations.

Optimism around friendlier regulations and victories for

pro-crypto lawmakers into the Congress has sent cryptocurrencies

skyrocketing in the past week.

Lurking below the surface is the worry of tariffs being

implemented by the Trump administration, keeping stocks outside

the U.S., the euro, China's yuan and chip shares in general

under pressure.

Futures indicate the European bourses are due for a lower

open, while the euro remained rooted near its lowest

level since April. China's yuan skidded to a 3-1/2 month low

against the dollar on Tuesday.

Stocks in Asia were on the back foot mainly as tech-heavy

Taiwan and South Korea shares took a beating. Reuters reported

earlier in the week that the U.S. ordered Taiwan Semiconductor

Manufacturing Co ( TSM ) to halt shipments of advanced chips

to Chinese customers that are often used in AI applications.

Meanwhile, investors will focus on the macro side,

especially with U.S. inflation data due on Wednesday. Traders

have not fully priced in a 25 basis point cut from the Fed next

month but the data in the coming days will dictate the rate

path.

British labour data will likely sway the sterling, with the

pound trudging towards a three-month low. It was last

down 0.25% at $1.2838.

In the corporate world, AstraZeneca ( AZN ) results will

likely take the spotlight as investors will watch out for

comments on the drugmakers' issues in China.

AstraZeneca ( AZN ) said last week its China President Leon Wang had

been detained by Chinese authorities and, although it did not

know the reason, it did not believe it was linked to a large

health insurance fraud case involving the company.

Key developments that could influence markets on Tuesday:

Economic events: Germany CPI for October, UK labour data

Earnings: Bayer AG, AstraZeneca ( AZN ) and Vodafone

(By Ankur Banerjee; Editing by Muralikumar Anantharaman)