Your morning market update from Knight Frank Research - Monday 30 March
Good morning,
2 minutes to read
Economic headlines
Global stock markets start the week in a stronger position, with gains over the last seven days of 6% for the FTSE 100 and 10% for the S&P 500 in the US. The pound sits up 5% on the week at $1.24 as market turmoil eased slightly.
The number of Covid-19 cases continues to climb, though at a slower rate. Spain, which two weeks ago had a growth rate above 40% per day on average, has seen this number fall to about 15 per cent.
The US continues to see increases above 25% per day, but have fallen from recent highs of nearly 40%.
The UK government will review the prevailing restrictions on movement in two weeks, although they are unlikely to be lifted for two or three months, with some form of social distancing advice likely to remain in place for up to six months, according to England's deputy chief medical officer.
Housing market implications
Last week, the government published detailed advice on buying, selling and moving home during the Covid-19 crisis. Lenders operating with skeleton staff had become inundated with calls and restrictions on movement were largely preventing home visits by valuers.
Banks have since been clarifying their positions. Though some have withdrawn completely from the new purchase market, others have reduced the loan-to-value ratios at which they are willing to lend and continue to do business using automated or desktop valuations, according to colleagues at Knight Frank Finance. More on this later this week.
Last week we noted the increasing importance of virtual viewings and drone footage to keep the market ticking over. Reliance on new technologies is extending into the development market as councils explore 'virtual' planning meetings, writes Anna Ward.
In the super-prime lettings market, clauses are being written into rental agreements that enable tenants to secure a property, but only start paying rent once government restrictions are lifted, according to Tom Bill.
To help us all make sense of the impact of Covid-19 on the global economy Flora Harley is tracking real-time economic indicators across key cities. Her analysis of traffic congestion data reveals the extent of restrictions on movement in cities like Paris and New York, while Shanghai and Beijing things are beginning to return to something approaching normality.
Andrew Shirley's rural update reveals the effects of the disruption on commodity prices, and provides an analysis of the farms and estates market, where desktop market appraisals have come to the fore.