Global stocks get lift from vaccine hopes, but Mnuchin's decision to nix Fed lending programs limits gains
stocksrose slightly on Friday, lifted by the COVID-19vaccine sentiment, but US stock futures slipped after the Treasury's decision to allow several Federal Reserve emergency programs to expire soon.
- The "negative surprise" decision comes at a time when US economic data is weakening.
- Shares in Europe rose on expectations that a UK-EU Brexit trade deal could be announced as soon as Monday.
- Oil recovered from its start-of-the-month slump.
Global stocks made modest gains on Friday on the back of economic recovery hopes, but were limited after Treasury Secretary Steve
Mnuchin has requested for the expiration of several important credit facilities including the primary market corporate credit facility, the municipal lending facility, and the main street lending program by December 31.Read More: Buy these 15 cheap, unheralded stocks that will take off in 2021 thanks to their accelerating sales growth, Jefferies says
Democrats have said the decision will serve as a handicap to the incoming Biden administration, since it could prevent another treasury secretary from restarting emergency lending programs early next year.On the European
Oil prices have recovered from their drop to five-month lows in early November, thanks to the prospect of a COVID vaccine reviving fuel demand early next year. Brent Crude rose 0.9%, to $44.62, and West Texas Intermediate rose 0.8%, to $42.24. Both are trading around their highest since early September, but this strength might not last, as production discipline by OPEC+, the most important supportive factor on the supply side, could falter, according to Commerzbank analysts.Read More: Deutsche Bank says you need to own these 6 stocks poised to surge as vaccine progress spurs an economic recovery — including one that could rally by 83%
- Karnataka's Health Minister says the state is well prepared for COVID-19 vaccine delivery
- Markets in Bhopal can now stay open till 8 pm only as COVID-19 cases surge in the city
- NSE declares Karvy Stock Broking as defaulter, expels from membership
- SC asks Centre to respond on plea seeking uniformity in RT-PCR test rates across the country
- From IndusInd Bank and Kotak Mahindra to Bajaj Finance — seven of the top ten Nifty gainers in the last three months have been financials