Updates with moves in early London trade

By Dhara Ranasinghe and Wayne Cole

LONDON, Nov 6 (Reuters) -U.S. and European stock futures and the dollar surged on Wednesday, while bitcoin jumped to a record high as Republican Donald Trump claimed victory in the U.S. presidential election.

Fox News projected that Trump has won the U.S. presidency, defeating Democrat Kamala Harris and capping a stunning political comeback four years after he left the White House. Other media outlets have yet to call the race.

Analysts generally assume Trump's plans for restricted immigration, tax cuts and sweeping tariffs if enacted would put more upward pressure on inflation and bond yields, than rival Democrat Kamala Harris' policies.

U.S. Treasury yields shot to four-month highs US2YT=RR, US10YT=RR. The dollar surged - putting it on track for its best one-day gain in over two years - while U.S. equity futures were up almost 2% ESc1, 1YMc1.

In early European trade, concern that higher tariffs under a Trump presidency could deal the region's economy a fresh blow pushed the euro down 1.7% to $1.074 EUR=EBS, while euro zone government bond yields fell sharply with German two-year bond yields down 10 basis points at 2.19% DE2YT=RR.

Money markets priced in lower European Central Bank rates meanwhile.

"For European businesses, Trump’s return to the White House would mean considerable trade policy and geopolitical uncertainty, with negative implications for growth on the continent," said Berenberg chief economist Holger Schmieding.

Euro zone stock futures STXEc1, FDXc1 however rose sharply, tracking their U.S. peers.

Japan's Nikkei surged over 2.5% .N225 as the yen slid JPY=EBS, while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.9%.

While markets 0#FF: were still confident the Federal Reserve will cut interest rates by 25 basis points on Thursday. FEDWATCH, futures for next year eased into the red with December down 9 ticks.

Yields on 10-year Treasury notes US10YT=RR jumped to a four-month high of around 4.47%, from 4.279%, breaking last week's top of 4.388%. Two-year yields US2YT=RR climbed to 4.31%, from 4.189% late in New York. US/

"If we look at the long end of the curve, that reflects the fact that both candidates are not exactly fiscal conservatives, they're both willing to use the fiscal printing press," said Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions.

YUAN BUCKLES

In currency markets, the dollar index surged 1.5% to 104.97 =USD, the biggest daily rise since early 2023. The euro slid 1.7% to $1.0744 EUR=EBS, falling back from a one-month top of $1.0937 struck overnight.

The dollar jumped 1.5% on the Japanese yen to 153.89 yen JPY=EBS, and further away from a low of 151.34. USD/

Bitcoin BTC= climbed to a record high of $75,397 and was last up 7% on the day. Trump is seen as more actively supportive of cryptocurrencies than Harris.

The dollar gained 1.0% on the offshore yuan CNH= to 7.1726 yuan, sparking reports Chinese banks were selling dollars to slow the yuan's decline.

China is seen on the front line of tariff risk, and its currency in particular is trading on tenterhooks with implied volatility against the dollar CNHSWO= around record highs.

Chinese stock markets have surged to almost one-month highs as investors expect a meeting of top policymakers in Beijing this week to approve local government debt refinancing and spending. Chinese blue chips .CSI300 lost early gains to turn flat.

Gold prices were choppy with a dip of 0.3% to $2,734 an ounce XAU=, off a recent record peak of 2,790.15. GOL/

The sharp rise in the dollar pressured oil prices, and other commodities, as it makes them more expensive when buying in other currencies. O/R

U.S. crude CLc1 shed 1.35% to $71.03 per barrel, while Brent LCOc1 fell 1.4% to $74.47.

Reporting by Dhara Ranasinghe and Wayne Cole
Editing by Ros Russell

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