The Noose Tightens Over Lending Programs

US index Dow Jones settled lower following the reduction in economic aid in light of rising COVID infections.

Steven Mnuchin decided not to extend many of the current lending programs of the Federal Government beyond the end of this year in an attempt to bring back $455B that was initially allocated to such programs.

However, amidst this and investors struggling to balance their hopes for vaccine and new lockdown measures, the EUR/USD managed to hold its gains below 1.1900. It will be difficult for EUR bulls to break this 1.19 level. If at all, they manage to break, then the next focus would be 1.1920.

Last week witnessed S&P 500 futures ending close to lows after a turbulent session featuring highs and lows.

The corona pandemic continued to remain a key driver in the past week. With containment measures likely to hit the service sector too, it will continue to influence the market and major players.

However, the European indices performed better than their US counterparts with CAC40 leading the way with a rally of 2.15% and DAX30 gaining 0.46% and EuroStoxx 600 gaining 1.15%. The major market movers were from auto industry to include Daimler, BMW, Continental, Volkswagen, etc.