NEW YORK - Asian and European stock markets traded mixed in jittery deals as Americans head to the polls in critical midterm elections.
The dollar clawed back some of its recent losses versus the euro, while oil continued to be weighed down by weaker Chinese demand expectations.
Frankfurt stocks gained ground after overnight Wall Street gains, but Paris flatlined and London slid in value.
"Those US midterm elections today might keep investors on the sidelines a bit before they make any major decisions," noted Markets.com analyst Neil Wilson.
Hong Kong and Shanghai sank as speculation about a rollback of China's strict zero-Covid policies fuelled market volatility, even after Beijing vowed to stick with its harsh lockdowns and testing regimes.
On the upside, Tokyo stocks won 1.3 percent.
Polls opened Tuesday in crucial US elections that could decide the political future of both President Joe Biden and his predecessor Donald Trump -- who has all but announced he will seek the White House again in 2024.
Biden's Democrats are facing a gargantuan struggle to hang on to Congress, after a race the president has cast as a "defining" moment for US democracy -- while Trump's Republicans have campaigned hard on kitchen-table issues like inflation and crime.
Polls show Republicans are likely to win at least one house of Congress -- and some see the prospect of further Washington gridlock as a scenario that lessens the risk of policy uncertainty.
"Consensus is that investors prefer political deadlock as it prevents any significant shifts in policy," added Scope Markets analyst James Hughes.
"With that looking like a real possibility, the real market turbulence may appear later in the week."