(Updates with the opening of the US stock market, adds FACTBOX link)
* The US Treasury ends the stimulus
* Hopes diminish for a rapid series of new American stimuli
* California sets new curfews due to coronavirus outbreaks
* Flat dollar, US Treasury yield slips
* Global assets: tmsnrt.rs/2jvdmXl
NEW YORK, Nov. 20 (Reuters) – Stocks were weaker overall and bond yields slipped on Friday amid concern over declining U.S. stimulus measures and the economic cost of rising COVID infections -19 in the world.
Hopes for a stimulus-induced recovery faded after US Treasury Secretary Steven Mnuchin said the US Federal Reserve’s major COVID-19 pandemic loan programs to support businesses and governments premises would expire by the end of 2020.
Shares had risen slightly in Europe earlier. At around 4 p.m. GMT, the Dow Jones Industrial Average fell 123.46 points, or 0.42%, to 29,359.77 and the S&P 500 lost 10.19 points, or 0.28%, to 3,571.68 . The highly technical Nasdaq Composite added 4.32 points, or 0.04%, to 11,909.04.
The benchmark 10-year Treasury yield rose 4/32 going up to 0.8439%, from 0.855% Thursday night. The rate had earlier slipped to its 10-day low at 0.818%, before leveling off in subsequent trade.
The dollar index was down 0.004%, the euro down 0.15% to $ 1.1855.
The Japanese yen weakened 0.07% against the greenback to 103.79 per dollar, while the British pound last traded at $ 1.328, up 0.14% on the dollar. day.
Mnuchin’s comments came after markets surged Thursday over hopes of further stimulus after Democratic Leader of the US Senate Chuck Schumer and Republican Majority Leader Mitch McConnell decided to resume COVID-19 relief talks .
FACTBOX-This is where the Fed’s emergency facilities are located.
New surges in coronavirus cases are also hurting sentiment, with California announcing new curfews in an attempt to tackle the spike in infections, while Japan faces a third wave of the virus and parts of Europe are already subject to recently renewed restrictions.
The World Trade Organization said if world merchandise trade rebounded in the third quarter after the lockdowns, there would be a slowdown at the end of 2020.
In a letter to U.S. Federal Reserve Chairman Jerome Powell, Mnuchin said that $ 455 billion allocated to the treasury under the CARES Act should instead be available for Congress to reallocate.
Although little used, Fed officials believed the programs reassured financial markets and investors that credit would remain available to help businesses, local agencies and even nonprofits get through the crisis. pandemic.
Mnuchin’s decision added to market concern over broader economic growth, as data shows the rapid rapid recovery after a historic fall in the US economy is fading, with more than 10 million people who had a job in january still without work.
“The fact that the market is able to withstand this point means that there is sunshine ahead, driven by the fact that in the medium term, economic activity will accelerate and there is positive news on the vaccine, ”Francois Savary, investment director at Swiss wealth manager Prime Partners, said.
Reporting by Alwyn Scott in New York and Tom Arnold in London; Editing by Angus MacSwan