Friday had global stock trends mixed amid COVID-19-related disagreements in U.S. agencies. The Federal Reserve and U.S. Treasury seem to have conflicting viewpoints on virus-related spending, leading to unfortunate news for investors. Outside the U.S., however, things seemed slightly better as the Stoxx Europe 600 index recorded a rise of 0.4 percent. Asian stocks, excluding Japan’s Nikkei 225 index, also finished higher across the board.
The U.S. showed mixed results, as the Dow Jones Industrial Average futures showed a noticeable slip of 77 points. S&P showed a similar trend, finishing slightly (0.2%) lower. Nasdaq-100 futures counteracted the downward movement showing ending up somewhat positive. Some speculate that the cause for the positive U.S. stock shifts are the renewed hopes of fiscal stimulus.
Statement of Treasury Secretary Steven Mnuchin
The positivity seems to have gone away with Treasury Secretary Steven Mnuchin’s Thursday statement. Namely, Mnuchin declined the extension of emergency loan programs set up by the Federal Reserve. As it stands, the loans are set to expire as the year ends. Additionally, he wants to see the central bank returning extra funds to the Treasury, which would lead to Congress reappropriating $455 billion.
Fed disagreed with the move, stating that the established emergency facilities should continue serving their role. The role in question is of a backstop for the still-damaged economy of the country. Among the five loan facilities that would soon expire, one specifically aims to assist small businesses.
While the two agencies argue, COVID cases across the country continue to surge and hit critical numbers. To combat the spread, specific states have started imposing stricter measures in restricting movement and social gatherings. California, for example, now has a 10 p.m. curfew for most of its citizens. As Thanksgiving approaches, the Centers for Disease Control and Prevention also released a statement advising against travel related to the holiday
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