Fears over the end of the furlough scheme next month have been holding back stocks on the London index. However, despite refusing to consider extending the furlough scheme, yesterday the Chancellor did hint at “creative” support for jobs.
The news from Mr Sunak helped boost the index, with shares up 79 points – or 1.32 percent – to 6,105.
The end of the scheme has sparked concern of an imminent spike in unemployment, with the UK Government under pressure to do more to help struggling firms.
Yesterday was the first indication of further Government support.
Senior market analyst Joshua Mahony said: “While fears of a spike in bankruptcies and job losses had been holding back sentiment ahead of the ending of furlough next month, comments from Rishi Sunak over his willingness to support jobs ‘in a creative way’ shows the potential for further action in the weeks ahead.”
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6.00am update: Re-cap of Tuesday’s trading
London’s top index steamed to a strong showing on Tuesday, beating off downwards pressure from a rising pound and defying a more dampened mood on the continent.
The FTSE 100 jumped 1.3 percent, ending the day at 6,105.54 points, a rise of 79.29.
The index was buoyed by a rally late in the day, pushed up as the pound lost some of its gains earlier in the day.