Extending the lockdown

‘Hard-hit European countries extend lockdown but plan reopening’ – Top European leaders have promised to keep lockdown measures in place despite signs that some countries are now over the worst of the virus outbreak. France’s president, Emmanuel Macron, announced on Monday that he would extend the national lockdown until at least May 11^th, while Italy extended their strict social distancing measures until May 3^rd. Meanwhile, UK foreign secretary Dominic Raab announced that Britain’s lockdown rules would be in place for the foreseeable future. (Financial Times)
‘OPEC secures record global oil cuts deal under US pressure’ – The recent price war between Saudi Arabia and Russia came to an end on Sunday when the two sides finalised a deal to begin the biggest oil production cut in history. OPEC said it would cut 9.7m barrels of production a day in May and June, equivalent to almost 10% of global supply, along with a commitment to continue with lower output until April 2022 to help stabilise prices. Oil prices remain about half their price in January but have recovered from 18-year lows of around $20. (Financial Times)

Risk assets were buoyant overnight due to the OPEC announcement and news that China’s March exports dropped less than expected. US and European equity futures rose along with Asian markets, where the Nikkei has risen more than 3%. In currencies, the Dollar index has moved over 1% lower since Friday, losing ground to commodity currencies like the Norwegian Krone and Aussie Dollar

G7 Meetings: Taking place all day

GBPUSD: 1.2557

GBPEUR: 1.1490

EURUSD: 1.0928