FTSE enjoys pre-easter rally, up 3%

A massive stimulus package in the US excited markets yesterday as the trading week ended on a high. The FTSE 100 closed up 164.93 points to 5,842.66, in its last trading session until Tuesday.

The US Federal Reserve announced a new $2.3 trillion (£1.9 billion) programme to support businesses, backing loans to those with fewer than 10,000 workers.

It came after the UK government announced it would be able to tap into its overdraft with the Bank of England.

“All of this extra stimulus has helped overshadow the fact that there is little likelihood in the short term that the current lockdown measures will be lifted,” said Michael Hewson, an analyst at CMC Markets.

It also overshadowed another nightmare week for the US jobs market. Another 6.6 million Americans added their names to the weekly jobless claims this week, against expectations of around five million.

Just three weeks ago, 3.3 million people joined the system, a figure then far above previous records. It means that almost 17 million Americans have lost their jobs in recent weeks.

Both main US indexes, the S&P 500 and the Dow Jones, were trading up by around 1.9 per cent after markets closed in the UK.

The pound lost 0.1 per cent against its rival on the continent, with a pound now costing €1.1394. A pound will now put Americans back by $1.2448, a 0.5 per cent rise in the value of sterling.

In company news, Easyjet gained 5.5 per cent to close at 681.2p as it deferred the purchase of 24 Airbus aircraft following pressure from founder Sir Stelios Haji-ioannou.

The airline announced that the measure will be implemented over the three financial years up to 2022.

Greggs said it will be able to get £150 million from the Treasury and the Bank of England after closing its stores across the country, setting it up to survive the year even if bakeries cannot reopen. Shares dropped 3.1 per cent to 1,791p.

Diageo shares gained 4.4 per cent to end the day at 2,633p despite the news that the speed of the shutdown has hit its business harder than ever. It scrapped advertising for many brands and put its share buyback scheme on hold.