By Peter Nurse
Investing.com – European stock markets will open mixed on Friday, as investors grapple with conflicting reports involving U.S. stimulus measures as surging coronavirus cases threaten the global economic recovery.
At 2:05 am ET (0705 GMT), the contract in Germany was down 0.1%, in France it was down 0.3% while the UK contract was up 0.1%.
In a letter to Federal Reserve Chairman Jerome Powell on Thursday evening, US Treasury Secretary Steven Mnuchin called for the reappropriation of some $ 455 billion allocated to the Treasury under the CARES Act earlier in the year, potentially ending central bank relief programs.
The Fed responded quickly by issuing its own statement calling for “all” facilities to be kept in place.
It was the first serious sign of contention between the two top U.S. economic policymakers, and comes just after the hike for the first time in five weeks as restrictions put in place to tackle the current surge in Covid-19 cases have stopped the resumption of work in the country. market.
That said, investors will have been buoyed by the overnight news that Republican Majority Leader Mitch McConnell had agreed to restart talks to craft a new tax relief package.
Back in Europe, the President of the European Central Bank, Christine Lagarde, promised a solid monetary stimulus plan for December, during a speech to a committee of the European Parliament on Thursday.
She also urged governments to make pandemic relief available “without delay” as the eurozone economy is at risk of being hit hard by the fallout from rapidly rising infections and restrictions.
On the economic data list, the UK climbed 1.2% in October on the month as consumers in the country proved more resilient than expected.
Oil prices were largely unchanged on Friday, despite concerns about growing demand given the growing number of coronavirus cases and signs of a slowing US labor market.
futures traded at $ 41.90 a barrel, while the international benchmark contract rose 0.1% to $ 44.25, with both remaining well above the $ 40 mark after the gains earlier in the week thanks to vaccine optimism.
Elsewhere, rose 0.2% to $ 1,864.90 / oz, while it traded 0.1% higher at 1.1879.
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