Broadcom named strategic vendor for Walmart virtualization solutions
(Updates with U.S. stock market opening, adds FACTBOX link)
* U.S. Treasury pulls plug on stimulus
* Hopes dim for quick round of new U.S. stimulus
* California sets new curfews due to coronavirus flare-ups
* Dollar flat, U.S. Treasury yield slips
* Global assets: http://tmsnrt.rs/2jvdmXl
By Alwyn Scott
NEW YORK, Nov 20 (Reuters) - Stocks were broadly lower and
bond yields slipped on Friday on concern about dwindling
stimulus in the United States and the economic cost of rising
COVID-19 infections around the world.
Hopes of a stimulus-led recovery faded after U.S. Treasury
Secretary Steven Mnuchin said key COVID-19 pandemic lending
programs at the U.S. Federal Reserve to support businesses and
local governments would expire by the end of 2020. Stocks had edged higher in Europe earlier. Around 1600 GMT,
the Dow Jones Industrial Average .DJI was down 123.46 points,
or 0.42%, to 29,359.77 and the S&P 500 .SPX had lost 10.19
points, or 0.28%, to 3,571.68. The tech-heavy Nasdaq Composite
.IXIC had added 4.32 points, or 0.04%, to 11,909.04.
The benchmark 10-year Treasury yield US10YT=RR was up 4/32
in price to yield 0.8439%, from 0.855% late on Thursday. The
rate had slipped earlier to its lowest level in 10 days at
0.818%, before stabilizing in later trading. The dollar index =USD fell 0.004%, with the euro EUR=
down 0.15% to $1.1855.
The Japanese yen weakened 0.07% versus the greenback at
103.79 per dollar, while Sterling GBP= was last trading at
$1.328, up 0.14% on the day.
Mnuchin's comments came after markets rose Thursday on hopes
for further stimulus after U.S. Senate Democratic leader Chuck
Schumer and Republican Majority Leader Mitch McConnell decided
to resume COVID-19 relief talks. FACTBOX-This is where the Fed's emergency facilities stand.
Fresh flare-ups in coronavirus cases also hurt sentiment,
with California announcing new curfews to try to fight surging
infections, while Japan faces a third wave of the virus, and
parts of Europe are already under recently renewed restrictions.
The World Trade Organization said that while global trade in
goods had rebounded in the third quarter from lockdowns, there
would be a slowdown at the end of 2020. In a letter to U.S. Federal Reserve Chair Jerome Powell,
Mnuchin said $455 billion allocated to Treasury under the CARES
Act should be instead available for Congress to reallocate.
Although not used extensively, Fed officials felt the
programs reassured financial markets and investors that credit
would remain available to help businesses, local agencies and
even non-profits through the pandemic.
Mnuchin's decision added to market anxiety about broader
economic growth as data shows the early fast recovery from a
historic plunge in the U.S. economy is fading, with more than 10
million who had jobs in January still out of work.
"The fact the market is able to resist to this extent means
there is some sun ahead, driven by the fact that in the medium
term economic activity will accelerate and there is positive
news on the vaccine," François Savary, chief investment officer
at Swiss wealth manager Prime Partners, said.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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