GLOBAL MARKETS-Stocks mixed, dollar falls before elections, Fed

                                
  
  * Wall Street stalls ahead of Fed, US elections next week
  * Dollar slips as mood shifts again on Fed's likely easing
  * Bonds rise on higher yields, hopes of big Fed purchases
  * Oil ends up on U.S. jobless claims, dollar weakness
 (Adds close of U.S. markets)
                                
 By Herbert Lash
                                
 NEW YORK, Oct 28 (Reuters) - Global stocks rose despite
Wall Street's mixed finish and the dollar's slide on Thursday
as investors pulled back before expected upheaval from next
week's U.S. elections and the likelihood of more monetary
easing.
                                
 Oil prices ended higher, supported by an unexpected drop
in new U.S. jobless claims to a three-month low and a dollar
that weakened over rising worries about the extent of a second
round of stimulus by the U.S. Federal Reserve next week. For
details see: [ID:nN28128308]
                                
 Trading in Tokyo was poised to open near break-even, with
the December futures contract that trades in Chicago for the
Nikkei 225 <0#NK:> off 5 points at 9,350.
                                
 During Thursday's trading, investors shied away from big
bets ahead of the two-day Fed meeting that will end on this
coming Wednesday.
                                
 The Federal Reserve Bank of New York has asked market
participants about their expectations for further easing as
part of its regular survey prior to Fed meetings, a person
familiar with the survey said. [ID:nN28172214]
                                
 A Reuters poll of 17 primary dealers on Wednesday showed
forecasts on the size of a renewed Fed program ranging widely
between $250 billion and $2 trillion, with most expecting
purchases of between $80 billion and $100 billion a month.
[FED/R]
                                
 The drop in claims for new unemployment benefits gave U.S.
equities an early gain as did a weak dollar, but the inverse
relationship between the U.S. currency and stocks appeared to
break down. Mixed earnings also added to the choppy action.
[ID:nN28118907] [ID:nLDE69R17T]
                                
 STALLING FOR TIME
                                
 Next week could bring significant shifts in both monetary
policy and legislative direction, leading investors to largely
disregard earnings news and economic reports.
                                
 "Perhaps this is going to be a 'buy the rumor, sell the
news' kind of deal where we have had the rally in anticipation
of all these things," said Phil Orlando, chief equity market
strategist, at Federated Investors in New York.
                                
 "Now that we are about to cross the threshold, maybe we
are getting a little toppy here and we need to consolidate
some of those gains."
                                
 The Dow Jones industrial average <.DJI> slipped 12.33
points, or 0.11 percent, to end at 11,113.95. The Standard &
Poor's 500 Index <.SPX> edged up 1.33 points, or 0.11 percent,
to 1,183.78. The Nasdaq Composite Index <.IXIC> rose 4.11
points, or 0.16 percent, to close at 2,507.37.
                                
 European shares ended higher on upbeat earnings results,
helping lift MSCI's all-country world equity index
<.MIWD00000PUS> 0.6 percent.
                                
 The MSCI index of Asia Pacific stocks outside Japan rose
0.7 percent <.MIAPJ0000PUS> after a nearly 2 percent slide the
day before. Japan's Nikkei stock average <.N225>, which was
spared the sell-off, dipped 0.2 percent to end at 9,366.03, a
six-week low.
                                
 The euro <EUR=> gained 1.15 percent at $1.3926 as the
dollar slipped. A recent move to trim extreme short dollar
positions amid speculation the Fed will announce plans to buy
more assets next week, also slowed. [ID:nN28118050]
                                
 The dollar tumbled against a basket of major currencies,
with the U.S. Dollar Index <.DXY> down 1.10 percent at
77.290.
                                
 Against the Japanese yen, the dollar <JPY=> dropped 0.86
percent to 80.99.
                                
 FLOCKING TO GOLD AND BONDS
                                
 Gold closed higher as the dollar slid. [ID:nN28582239]
                                
 Gold futures for December delivery <GCZ0> climbed $19.90,
or 1.5 percent, to $1,342.50 an ounce on the COMEX division of
the NYMEX.
                                
 Crude oil rose in a seesaw session. U.S. crude for
December delivery <CLc1> rose 24 cents to settle at $82.18 a
barrel, after dropping earlier to $81.50. It has gained in
four of the last five sessions.
                                
 ICE December Brent crude <LCOc1> added 43 cents to end at
$83.59.
                                
 "The market looks somewhat directionless until the
election and the Federal Reserve details next week are known,"
said John Kilduff, partner at Again Capital LLC in New York.
                                
 A recent rise in yields and talk of aggressive
quantitative easing by the Federal Reserve drove buyers to
U.S. Treasuries and bolstered demand in an auction of
seven-year Treasury notes. [ID:nN28570645]
                                
 Ten-year yields above 2.70 percent attracted buyers. The
10-year Treasury note <US10YT=RR> rose 18/32 in price to yield
2.66 percent, down from 2.72 percent late on Wednesday.
 (Reporting by Chuck Mikolajczak, Steven C. Johnson, Chris
Reese, Gene Ramos and Carole Vaporean in New York; Writing by
Herbert Lash; Editing by Jan Paschal)