US Futures Fall in Conflict Over Fed Incentive
20.11.2020 – Global Markets Analysis – US stock futures fell on the last trading day of the week due to the dispute between Treasury Secretary Steven Mnuchin and the Fed over emergency borrowing. Asian stocks followed a mixed trend.
S&P 500 Index futures were withdrawn after the Trump administration and the Fed clearly disagreed over whether to reproduce pandemic programs. Shares in Australia and Japan declined, with Chinese stocks fluctuating. US Treasury bonds maintained their earnings. The dollar gained value against important currencies. Gold ETFs declined as the amount of gold declined.
20.11.2020 – Global Markets Analysis
On Thursday, the fourth trading day of the week, tech companies raised the US indices, as investors assessed virus restrictions as well as optimistic expectations for the new potential vaccine. The shares of companies, which are expected to be positively affected by partial closures, performed well.
Mnuchin said it would be better for legislators to divert their unspent subsidy funding – including money withdrawn from the Fed – elsewhere to support the economy while awaiting the vaccine. He had never before requested the return of unused funds from the Fed’s emergency pandemic lending programs. The Fed reacted strongly, saying that programs play a vital role.
Investor optimism about advances in potential vaccines that peaked global markets on the first trading day of the week began to decline due to the rapid rise in virus cases and the uncertainty of the new financial stimulus package in the US. California has a curfew in most parts of the state.
- S&P 500 Index futures fell 0.6 percent at 13.12 at Tokyo time. The index rose 0.4 percent on Thursday.
- In Japan, the Topix Index fell 0.2 percent.
- In Australia, the S & P / ASX 200 Index fell 0.1 percent.
- The Hang Seng Index rose 0.4 percent.
- The Shanghai Composite Index rose 0.1 percent.
- The Bloomberg Dollar Spot Index rose 0.1 percent.
- Euro / Dollar parity did not change much at 1.1875.
- The pound/dollar was flat at 1.3265.
- The yen traded 0.1 percent down at 103.82 against the dollar.
- The yield of 10-year Treasury bonds in the US was 0.82 percent.
- Australia’s 10-year yield was 0.86 percent.
- WTI oil fell slightly to just over $ 42 a barrel.
- Gold fell 0.1 percent to $ 1,865 an ounce.