(Updates prices)

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China unveils steps to tackle 'hidden' debt of local

governments

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Treasury yields sag as Fed signals careful, patient easing

path

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Wall St hits record high again; world stocks up 3% this

week

By Dhara Ranasinghe and Koh Gui Qing

NEW YORK/LONDON, Nov 8 (Reuters) - The U.S. S&P 500

zoomed past 6,000 points on Friday to a new record while

Treasury yields retreated, as investors again cheered Donald

Trump's decisive victory, although disappointment about China's

latest fiscal support dampened the mood elsewhere.

A day after the Federal Reserve delivered a quarter-point

rate cut, as anticipated, the focus returned to the fallout of

Tuesday's U.S. presidential election and headlines out of

Beijing.

The offshore yuan weakened, while U.S.-listed shares of

Chinese firms and China exposed-sectors in Europe sank as

investors took in news that China's stimulus did not directly

inject money into the struggling economy.

But investors on Wall Street shrugged off frustration about

the lack of a Chinese fiscal bazooka and bought U.S. stocks. The

S&P 500 index climbed 0.6% to cross the 6,000-point mark,

the Dow Jones Industrial Average climbed 0.8%, and the

Nasdaq Composite added 0.2%. The S&P 500 and the Dow are

set for their best week in a year.

Shares of electric car maker Tesla, whose chief

executive, Elon Musk, became one of Trump's biggest supporters

in the last leg of his reelection campaign, shot up 10%,

catapulting its market capitalization to $1 trillion for the

first time since 2022.

Nicholas Colas, a co-founder of DataTrek Research LLC, said

there are several reasons for buying U.S. stocks: "The Fed is

cutting rates, and the U.S. economy is still strong."

In addition, the Republican party won not only the White

House this week, but also control of the Senate, and may win

control of the House of Representatives - a similar scenario,

Colas said, to the November 2016 election outcome that preceded

the S&P 500's 22% gain in 2017.

Investors are betting that a Trump administration will bring

lighter regulation and tax cuts that could boost the U.S.

economy.

Outside the United States the mood was more subdued. A MSCI

index for world stocks was flat, but still close

to a record high, while the pan-European STOXX 600 lost

0.7%.

"What you are going to get because of the clean sweep is a

mandate to improve the U.S. economy. So, taxes will come down,

bureaucracy will ease and regulation will become lighter," said

Guy Miller, chief markets strategist at Zurich Insurance Group.

"Between now and year-end, there is a tailwind for U.S.

stocks. The U.S. market has potential," he said.

Germany's DAX stock index fell 0.8% a day after posting its

best daily performance of 2024 so far, helped by

expectations that Germany could scrap its debt brake.

CHINA DISAPPOINTS

China unveiled a 10 trillion yuan ($1.40 trillion) debt

package to ease local government financing strains and stabilize

flagging economic growth.

Finance Minister Lan Fo'an said more stimulus was coming,

with some analysts saying Beijing may not want to fire all its

financial weapons before Trump takes over officially in January.

Mainland blue chips fell 1%, a day after rising

3%. Hong Kong's Hang Seng also slid in a sign of some

caution ahead of the announcement.

The offshore Chinese yuan fell 0.7% to 7.2011 per dollar

. China-exposed European luxury and mining

stocks each fell over 3%.

FED CUTS

U.S. Treasury yields fell after Fed Chair Jerome Powell on

Thursday signaled continued, patient policy easing.

The Fed's rate cut followed a quarter-point cut from the

Bank of England and a large half-point cut by Sweden, also on

Thursday.

Ten-year Treasury yields fell 8.3 basis points to 4.343%

, reversing sharp rises following the U.S. election

result.

Powell said Tuesday's election result would have no

"near-term" impact on U.S. monetary policy.

"The Fed pointed to a more uncertain economic outlook and

inflation remaining elevated," said Mahmood Pradhan, head of

global macroeconomics at the Amundi Investment Institute.

"Together with a likely change in policy direction under the

new administration, we expect a more uncertain and measured pace

of easing next year."

The dollar index, which measures the currency against

six major peers, rose to 105.04, following a 0.7% drop on

Thursday, its biggest since Aug. 23. On Wednesday, it soared

1.53%, the most in over two years, a sign of increased

volatility as investors assess the new Trump administration's

policies.

The euro and sterling both fell against the dollar

, while the dollar slipped 0.1% to 152.73 yen.

Bitcoin jumped 1.6% to $77,095, a record high,

following a nearly 10% surge this week. Trump has vowed to make

the United States "the crypto capital of the planet."

After a roller-coaster week, gold fell 0.8% to

$2,684.99. It slumped more than 3% on Wednesday, but bounced

1.8% overnight. Last week it surged to an all-time high of

$2,790.15.

Brent crude oil futures pared losses during London

trade and were last down 2.4% at $73.80, U.S. West Texas

Intermediate crude fell 2.9% to $70.26.