Your morning market update from Knight Frank Research - Friday 27 March
Good morning,
2 minutes to read
Economic headlines
The US has overtaken China to become the country with the largest number of confirmed coronavirus cases in the world, underlining the gradual westward shift of the crisis.
The dollar weakened on this news allowing the pound to regain some of the ground it lost in recent days, climbing to $1.21 overnight.
Despite the dollar’s weakening in the currency markets, the S&P 500, the main US benchmark stock market, has now recorded its fastest three day advance in almost a century on the back of unprecedented government stimulus.
Housing market headlines
Detailed official advice on buying, selling and moving home during the Covid-19 crisis was published last night. The government’s note provides guidance for purchasers, vendors and the industry – and will help remove some of the confusion in the media regarding what is and what isn’t permitted under the new social distancing rules.
The new government advice was prompted in part because mortgage lenders are increasingly stretched. Like many businesses they are operating with fewer resources, and after two emergency rate cuts they've been inundated with calls from borrowers seeking to clarify their obligations, obtain payment holidays, or move to tracker mortgages. Over the coming days they will be focussing on existing customers in an attempt to reduce pressure on call centres.
For many people, recent events have confirmed a new imperative to reduce outgoings, and as banks alter the way they operate to adjust to the evolving situation, Knight Frank Finance has put together a guide for borrowers seeking to remortgage at a time when lenders are reducing access to some products, and valuers are unable to visit properties.
Our monitoring of global property markets continues. Last week, Kate Everett-Allen's analysis of market data in China revealed tentative signs of recovering housing market activity, today we take the story forward with two new investigations.
First up we share a deep dive into life in Beijing from Nicholas Holt, Knight Frank’s Head of Asia-Pacific Research. Nick reveals the markets and sectors where activity is reviving and those which are still struggling to gain traction.
Secondly, Flora Harley's analysis of conditions in Australia examines the performance of the residential market there, Flora notes that construction volumes are likely to rise following the classification of this activity as an essential service by the government, following a notable slowdown in activity over the past year.
The research team will continue to update you as the current situation develops. If you have any questions please contact me, or the team.