FTSE100 lifts on Sunak’s new support package
The FTSE 100 lifted to a three- week high as traders welcomed an expansion of furlough measures for companies hit by tighter restrictions
Chancellor Rishi Sunak said the government will pay two thirds of the wages of staff in pubs, restaurants and other businesses if they are forced to close under new coronavirus restrictions.
It came on top of broad optimism from traders that US politicians are getting nearer to agreeing their own package of financial relief.
London's top flight closed 38.62 points higher at 6,016.65 at the end of trading on Friday.
Across the Atlantic, the Dow Jones moved higher after the opening as investors continued to bank on the appearance of some fresh US stimulus measures.
Optimism from traders over a deal helped to buoy European indices later in the session, although the German Dax only made minor gains.
The Dax increased by 0.07 per cent, while the French Cac moved 0.71 per cent higher.
Connor Campbell, financial analyst at Spreadex, said: “It was a broadly positive end to a bit of a wild week, with most of the Western indices in the green.
“Looking ahead to next week, and investors will likely remain preoccupied with the state of play regarding US stimulus and, somewhat related, any election headlines.
“Complicating matters is the October 15 Brexit 'deadline', a potential source of anxiety for the pound and FTSE.”
Sterling moved higher v as traders rode the wave of optimism following the furlough extension.
The pound rose by 0.67 per cent versus the US dollar at 1.300 and was up 0.21 per cent against the euro at 1.100.
Pub groups and hospitality firms had a positive session, with JD Wetherspoon, Mitchells & Butlers and Whitbread all making strong gains as they welcomed the government's new financial support measures for sites forced to close again.
In company news, Rolls- Royce had another roaring session, surging higher as traders speculated over potential takeover bids. It rose another 27.85p to 223.2p at the close of play, representing a 120 per cent rebound since hitting a 17- year- low in its share price from last week.