U.S. Tsy-Fed Tension Weighs On E-Minis

Risk was dented late in the NY day as U.S. Treasury Secretary Mnuchin requested that the Fed return the unused cash that was made available for its numerous support schemes, while Mnuchin pushed for an end to some of the facilities. The Fed noted that it "would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy." This clearly represents a potential source of tension between the two institutions, which weighed on e-minis after hours.

• The major Wall St. benchmarks recovered from worst levels on Thursday, closing in positive territory, aided by comments from DC which pointed to an impending resumption of talks surrounding fiscal support.
• Regional equities were mixed during Asia-Pac hours, with a strong showing for Chinese auto names given the well-documented positive focus surrounding the development of the sector on the part of policymakers.
• Nikkei 225 -0.6%, Hang Seng +0.4%, CSI 300 unch., ASX 200 unch.
• S&P 500 futures -22, DJIA futures -231, NASDAQ 100 futures unch.