- November 20, 2020
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – Indian shares are seen opening on a cautious note Friday after the International Monetary Fund and Group of 20 nations warned that the economic recovery from this year’s recession is at risk due to fresh Covid-19 restrictions on households and companies.
Uncertainty over further economic stimulus may also weigh on sentiment after U.S. Treasury Secretary Steven Mnuchin said he does not plan to extend several key emergency lending programs beyond the end of the year and asked the Federal Reserve to return the money supporting them, sparking a rare clash between the central bank and Treasury.
In another development, U.S. President-elect Joe Biden assailed the Trump administration’s lack of cooperation on the presidential transition, saying it hindered his team’s ability to get up-to-date information on the pandemic.
Benchmark indexes Sensex and Nifty tumbled around 1.3 percent on Thursday amid weakness in global equity markets.
Asian stocks were muted in early deals and the dollar edged lower while oil prices traded mixed.
Overnight, U.S. stocks ended in positive territory as news that Congress will resume talks for a new Covid-19 relief bill helped outweigh concerns over rising virus cases and mixed economic readings.
The Dow Jones Industrial Average edged up 0.2 percent and the S&P 500 rose 0.4 percent while the tech-heavy Nasdaq Composite gained 0.9 percent reflecting expectations that new Covid-19 lockdowns will benefit technology companies.
European markets fell on Thursday on worries about rising coronavirus cases and the economic impact of regional shutdowns.
The pan European Stoxx 600 gave up 0.8 percent. The German DAX dropped 0.9 percent, France’s CAC 40 index shed 0.7 percent and the U.K.’s FTSE 100 declined 0.8 percent.