Investors face unclear outcome in midterms, with questions over spending, regulation

Investors were weighing a less clear outcome in the U.S. midterm elections on Wednesday, with Democrats doing better than expected, making questions about fiscal spending and regulation more ambiguous.

Control of Congress was still up for grabs early on Wednesday with many of the most competitive races uncalled, leaving it unclear whether Republicans would crack Democrats' tenuous hold on power. The prospects of a "red wave" had evaporated although in the House of Representatives, Republicans remained favored to win a majority.

"You're in a slightly different situation and it does...