Covid-19 Daily Dashboard – 9 July 2020

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

Download an overview of key economic and financial metrics relating to Covid-19 on 9 July 2020.

Equities: In Europe, the STOXX 600 is down -0.5%, while the DAX and the FTSE 250 have added +1.3% and +0.4%, respectively. In the US, futures for the S&P 500 are both -0.2%. In Asia, CSI 300 (+1.4%), S&P / ASX 200 (+0.6%), Kospi (+0.4%) and Hang Seng (+0.3%) were all higher on close.


VIX: The CBOE market volatility index and the Euro Stoxx 50 volatility price index are currently 29.67 and 28.46, respectively. Both indices remain elevated, indicating further expectations of near-term volatility.


Bonds: The US 10-year treasury yield and the German 10-year bund yield have slightly compressed this morning to 0.66% and -0.45%, while the UK 10-year gilt yield is flat at 0.18%.


Currency: Both sterling and the euro remain at $1.26 and $1.13, respectively. Hedging benefits for US dollar denominated investors into the UK and the eurozone are 0.30% and 1.08% per annum on a five-year basis.


Baltic Dry: The Baltic Dry index has declined for the second time following a 26 session rally, down -5.1% to 1,849. The recent decline in the Baltic Dry is predominantly driven by the contraction in the capesize index, which declined by -10% yesterday, to its lowest level since 17th June.


UK Summer Statement: The UK Chancellor Rishi Sunak unveiled a summer economic plan to help offset the implications of COVID-19 on the economy. The furlough scheme, which Sunak confirmed will end in October, will evolve into a £1,000 ‘job retention bonus’ per employee that is brought back from furlough and is kept in employment between November and January. However, the employee must earn over £520 per month to qualify. To further offset the number of people unemployed, Sunak outlined a £2 billion “kickstart scheme” to help 16-24 year olds find work placements and will double the number of work coaches at Jobcentre Plus. Other initiatives include a time limited reduction in VAT from 20% to 5% for sections of the Leisure and Hospitality sectors. The threshold for stamp duty on residential property is also to increase from £125k too £500k, which will apply until 31st March 2021. Households will additionally be able to receive a green grant for projects to make their home more energy efficient. In August, there will be a half price voucher scheme on Mondays - Wednesdays for dining in worth up to £10, to support local activity.