Nov 13 (Reuters) - A stronger-than-expected showing by Democrats in the U.S. midterm elections may force investors to rethink the split government scenario many had expected. Democrats held onto control of the U.S. Senate, extinguishing hopes of the "red wave" that Republicans had expected leading into the midterm elections. As of early Sunday, Republicans had won 211 seats and the Democrats 205, with 218 needed for a majority. Wall Street tends to view split government favorably, in part because some investors believe it makes major policy changes more difficult to achieve. Still, "Federal Reserve policy, rather than fiscal policy, will remain the main driver of markets in our view," they said.

---