Knight Frank daily update - Thursday 30th April
Antiviral drug trial lifts markets, competition in mortgage lending and the diary of an estate agent
2 minutes to read
Good morning,
Economic headlines
The S&P 500 gained nearly 3% yesterday, despite the US reporting its worst quarterly economic contraction since 2008. Markets that had been expecting negative data largely brushed off the news, instead focusing on the early results of a trial showing that treatment with an experimental antiviral drug can speed recovery in Covid-19 infected patients.
The drug has been shown to treat coronavirus for the first time, cutting the number of days patients take to leave hospital by almost a third. This is a good explainer from the FT.
Asian stocks also rose on the news. Global markets are up 11% this month as investors weigh plans by countries around the world to restart activity following widespread lockdowns.
Boris Johnson will give more details today on the conditions that must be met before the UK’s lockdown can be eased. With NHS capacity improving and the virus in retreat, the focus in government is on ensuring that any adjustments to current measures will not risk a second peak of infections.
Property market headlines
Mortgage lenders that were in retreat a month ago are once again hunting for business. It appears banks have largely cleared a backlog of applications that built up as they worked with skeleton staff to manage the fallout from two Bank of England emergency rate cuts and the introduction of mortgage payment holidays, according to Knight Frank Finance.
While difficulties remain regarding access to valuation, which is presenting a barrier for some activity, it is clear that lenders are looking beyond the lockdown and want to re-establish a pipeline of business.
Kate Everett-Allen's analysis of residential data from key global markets reveals a slowdown in first quarter price growth in many markets even as the Covid-19 outbreak was in its infancy. Kate’s piece has a detailed country-by-country guide on the easing of lockdowns.
This morning we continue our 'diary of an agent' series with James Toogood and Josh Marks, of Bristol and St John's Wood, respectively. Both reveal the growth of buyer registrations, as prospective movers use the lockdown to plan for the eventual lifting of restrictions.
If you have any questions, please contact me, or the team.