Covid-19 Daily Dashboard – 7 May 2020

An overview of key economic and financial metrics.
Written By:
William Matthews, Knight Frank
1 minute to read
Categories: Covid-19

Equities

European equity markets saw moderate gains this morning, in the wake of Chancellor Merkel announcing the re-opening of shops in Germany with timing controlled by individual federal states. This is with a caveat of an “emergency brake”, should there be an increase in the rate of transmissions above a certain level. 

Baltic Dry

The Baltic Dry index declined for the 12th consecutive session yesterday, falling -7.1% to $534. Pricing is now at a level comparable to that seen in the wake of the UK’s EU referendum result in 2016. 

Oil

Despite a -6.8% decline yesterday, Brent Crude barrel prices are up +18.8% over the week. According to Baker Hughes, as at the start of May, there were 408 active rigs in the US, 582 less than one year ago. 

Bonds

The yield gap between German and Italian 10-year bonds is currently 246bps, with the 10-year German bund yield at -0.50%. Italy’s bonds were downgraded to the lowest investment grade by Fitch last week. 

BoE monetary policy report

The Bank of England (BoE) has held the base rate at 0.1%, with the next review on June 18th. The MPC stated it was ready to provide more money to the economy, should it be required.

Currency

Sterling is currently $1.24, up +0.2% over the morning. The euro is stable at $1.08.

Download an overview of key economic and financial metrics relating to Covid-19 on 7 May 2020.