Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov
U.S. Stock Market

Some Emergency Lending Programs Will Not Be Renewed

U.S. Treasury Secretary Steven Mnuchin decided that some emergency Fed programs should not be renewed next year and that the money should be returned to the Treasury.

Mnuchin believes that companies need grants rather than loans in the current situation which expains why the emergency programs were not very popular.


At this point, the market agrees with Mnuchin, and S&P 500 futures are mixed in premarket trading. If traders believed that the existence of these programs was vital for the economy, they would have sold stocks and other riskier assets.

Meanwhile, the situation with coronavirus in the U.S. gets worse day by day, and states introduce new restictions. Yesterday, California and Ohio imposed nightly curfews to contain the spread of the virus.

The number of new cases recorded in the U.S. daily is already close to 200,000, and a move above this psychologically important level may put some pressure on stocks.


Stimulus Talks May Be Restarted

Yesterday, Democrats signaled that some Republicans were ready to get back to the negotiation table in order to discuss a new coronavirus aid package.

The previous attempt to reach a compromise deal yielded no results after many weeks of intense negotiations.

Markets remain skeptical about chances for a new stimulus bill before 2021. However, any signs of real progress in such talks may push stocks closer to all-time high levels. If negotiations gain steam, they will be a major story to follow in the upcoming weeks.

Gold Managed To Stay Above The Key Support At $1850

In recent trading sessions, gold and silver were under pressure as recent vaccine news reduced demand for safe haven assets.

However, this optimism has its limits. Gold failed to settle below the key support level at $1850 and is currently trying to rebound closer to its 20 EMA at $1885.

A move below $1850 will signal that investors have become even more optimistic about the speed of the economic rebound in 2021 which will be bullish for most stocks except for shares of precious metals miners.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.