U.S. stocks slipped in late trading Monday as jitters ahead of U.S. midterm elections and expected moves from the Federal Reserve prompted traders to duck out of a market whose long climb is now raising some eyebrows. The Dow Jones Industrial Average shed 23 points, or 0.2%, to 11095 in recent trading, reversing an earlier triple-digit climb.

Financial stocks slid into the red after a ProPublica report said the U.S. Securities and Exchange Commission is investigating whether J.P. Morgan Chase allowed Magnetar Capital, a hedge fund, to improperly select assets for a $1.1 billion deal backed by subprime mortgages. J.P. Morgan shed 1.1%, while other financials tumbled. First Horizon National slid 6.6%, Marshall & Ilsley fell 5% and BB&T shed 3.3%.

Still, traders' focus is largely on events scheduled for later this week, including Tuesday's midterm elections and Wednesday's conclusion of a meeting of the Federal Reserve's policy-making committee.

The stock market has rallied since early September on expectations that the Fed will resume purchasing bonds in order to stimulate the economy. The Nasdaq Composite shed 0.3% to 2499. The S&P 500 edged down 0.2% to 1181, led by its utilities sector.

European market

European bourses ended slightly higher Monday after a volatile session, as investors awaited the verdict of the U.S. Federal Reserve on a potential new round of quantitative easing later this week. The Stoxx Europe 600 index closed up 0.2% at 266.40. The index kicked off the first session of the month on a choppy note, fluctuating between gains and losses.

But as the afternoon set in, it turned higher, with investors cheering better-than-expected U.S. manufacturing data. The index of manufacturing activity, published by the Institute for Supply Management, rose to 56.9% in October from 54.4% in September. The surprise improvement gave a further lift to a mining sector already buoyed by strong Chinese manufacturing data published overnight. Xstrata PLC rallied 3.7% and Kazakhmys PLC gained 1.8%.

The most important item on the agenda for markets this week is the Fed's policy meeting Tuesday and Wednesday, during which the central bank is widely expected to unveil another leg of quantitative easing.

Markets are likely to trade in a relatively tight range until the decision is announced. Heino Ruland, market strategist at Ruland Research, said that investors are very much playing the latest macroeconomic data, betting that the better they come, the lower the amount of quantitative easing the Fed will go for.

U.S. mid-term elections that could shift control of Congress to Republicans Tuesday are adding to the uncertainty. Germany's DAX 30 edged up 0.05% to 6,604.86 and France's CAC 40 index gained 0.2% to 3,841.11.

In Germany, shares of truck maker Man gained 2% after it was upgraded to buy at Royal Bank of Scotland on the expected continued recovery in the global truck market. The U.K.'s FTSE 100 index advanced 0.3% to 5,694.62, supported by the heavily represented commodity sector.

Asian market

Most Asian stock markets ended solidly higher Monday in the wake of strong manufacturing data from China and India, but the Nikkei was weighed down by concerns over the outlook for earnings due to the strong yen.

China's Shanghai Composite climbed 2.5% and Hong Kong's Hang Seng Index tacked on 2.4%, and South Korea's Kospi gained 1.7%. Japan's Nikkei Stock Average declined 0.5%.

Despite the strong gains across most regional markets, some investors remained cautious ahead of the U.S. Federal Reserve's policy meeting Tuesday and Wednesday, due to uncertainty over the scope of the widely expected quantitative-easing measures.

Shares in Hong Kong and China advanced, led by commodities and financial sectors, after the release of the October purchasing managers' index. The official China Federation of Logistics and Purchasing's PMI rose to 54.7 in October, from September's 53.8.

The strength in the manufacturing sector was confirmed by a separate survey by HSBC, which showed the PMI rose to 54.8 in October from 52.9. Among commodities plays, Zijin Mining's Hong Kong shares climbed 4.1% and its Shanghai ones added 6.3%, while Sinopec's Hong Kong shares gained 2.5% and its Shanghai ones rose 2.0%.

Base metals

Base metals on the London Metal Exchange ended up Monday but off their highs, as the U.S. dollar recovered after stronger-than-expected manufacturing data. The data lowered expectations that the U.S. Federal Reserve will announce an aggressive bond buying program Wednesday and gave a boost to the dollar.

Copper ended 1.2% higher at $8,295 a metric ton. The metals rallied strongly overnight in Asia after two Chinese manufacturing indexes showed growth in China is accelerating and inflation pressures are rising.

Crude futures finished higher Monday after Saudi Arabia's oil minister suggested he was comfortable with higher oil prices, while a rapidly expanding Chinese manufacturing sector signaled that demand will continue to rise.

Light, sweet crude for December delivery settled up $1.52, or 1.9%, at $82.95 a barrel on the New York Mercantile Exchange after hitting a two-week intraday high of $83.86. Brent crude on the ICE futures exchange recently increased $1.20, or 1.4%, to $84.35 a barrel.

Upbeat U.S. economic data and a stronger dollar weighed on Comex gold prices, with some traders worried the positive news will reduce long-awaited Federal Reserve stimulus. The most actively traded contract, for December delivery, settled down 0.5%, or $7, at $1,350.60 per troy ounce on the Comex division of the New York Mercantile Exchange.

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