U.S. stocks rose broadly Tuesday as investors awaited the results of U.S. midterm elections seen ushering in more Republicans and a two day Federal Reserve meeting expected to yield more economic stimulus.

The Dow Jones Industrial Average climbed 77 points, or 0.7% to 11202. All but a handful of its 30 components were positive, led by a 3% rise in Home Depot. Among the measure's other gainers, American Express was up 2%, while Verizon Communications tacked on 1.7%.

The Nasdaq Composite rose 1% to 2531. The Standard & Poor's 500 stock index climbed 0.8% to 1194, with all its sectors in the black. The energy sector led the broad climb as crude oil futures rose to nearly $84 a barrel.

A new round of bond-buying expected to be announced on Wednesday, dubbed by the Street as QE2, would be aimed at lowering long term interest rates to give the economy a lift.

European market

European stock markets rose Tuesday, buoyed by expectations that the U.S. Federal Reserve will announce new measures to stimulate sluggish economic recovery. The Stoxx Europe 600 index closed up 0.4% at 267.50.

Energy shares buoyed the U.K. FTSE 100 index which rallied 1.1% to end at 5,757.43. Heavyweight oil giant BP rose 1.8%. The group said third quarter net profit fell 67% owing to a further $7.7 billion of pretax charges related to the oil spill in the Gulf of Mexico. Adjusted underlying profit, however, topped consensus forecasts.

Also in the energy sector, BG Group PLC rallied 3.4% after it reported a higher third quarter profit and announced an upgrade to its Brazilian reserves.

In Germany, the DAX 30 index rose 0.8% to end at 6,654.31. Health care company Fresenius SE gained 2.6% after reporting a 10% increase in third quarter net income and lifting its 2010 profit expectations. Retailer Metro AG slipped 1.5%. The company doubled its net profit for the third quarter, beating forecasts, and said it expects 2010 sales will exceed the prior year's levels but fall short of its medium term targets.

In Paris, the CAC 40 index rose 0.6% to 3,865.72, with shares of Total SA up 1.5%, following oil stocks broadly higher.

Asian market

Asian markets ended mixed Tuesday as investors awaited details of an additional monetary easing program expected from the U.S. Federal Reserve this week, while Sydney shares edged higher after Australia's central bank surprised markets with a quarter point interest rate increase.

Japan's Nikkei Stock Average and Hong Kong's Hang Seng Index both ended 0.1% higher. South Korea's Kospi added 0.2% and China's Shanghai Composite Index shed 0.3%. Trading volumes were modest as investors were generally reluctant to buy into stocks ahead of the Fed's policy meeting Tuesday and Wednesday.

Markets were also keeping a watch on U.S. midterm elections Tuesday. Indian shares ended a tad lower after the Reserve Bank of India raised interest rates for the sixth time this year, taking its policy lending rate a quarter point higher to 6.25%, as widely expected.

In Tokyo, some exporters advanced after taking big losses recently, with Toyota Motor rising 1.1% and Canon adding 0.6%.

In Hong Kong, China Construction Bank was among the day's biggest blue chip gainers, after the Beijing based lender unveiled plans to raise up to CNY61.62 billion in a rights issue in Hong Kong and Shanghai. The amount was lower than the CNY75 billion it earlier said it hoped to raise. The bank's Hong Kong shares added 2.2%, while its Shanghai listed ones rose a more modest 0.8%.

Base metals

Base metals on the London Metal Exchange ended higher Tuesday on a weaker dollar and positive European economic data. Aluminum made the biggest gains, closing 2.5% higher on the day. Copper followed with a 1.7% rise. Euro-zone manufacturing data showed the sector grew at a faster pace for the first time in three months in October, led by Germany.

A weekly U.S. retail index the International Council of Shopping Centers and Goldman Sachs Retail Chain Store Sales Index rose for the second consecutive week, a first since mid July.

Crude oil futures advanced Tuesday to their highest settlement since May as the dollar weakened ahead of the expected announcement Wednesday of the size of a Federal Reserve stimulus plan. Light, sweet crude for December delivery settled up 95 cents, or 1.2%, at $83.90 a barrel on the New York Mercantile Exchange, the highest closing price since May 3. Brent crude on the ICE futures exchange recently gained 73 cents, or 0.9%, to $85.35.

Investors continued to buy gold ahead of an expected Federal Reserve monetary stimulus announcement, but gains were small on account of already historically high prices. The most actively traded gold contract, for December delivery, rose $6.30, or 0.5%, to settle at $1,356.90 a troy ounce on the Comex division of the New York Mercantile Exchange.

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