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. [FRX/]

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 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 results will likely take the spotlight as investors will watch out for comments on the drugmakers' issues in China.

AstraZeneca 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 and Vodafone

(By Ankur Banerjee; Editing by Muralikumar Anantharaman)