United front from leaders buoys FTSE

Markets continued to enjoy the extra promises of cash from central banks and governments around the world to ensure that what will be a recession avoids becoming a depression.

The FTSE 100 closed the day up 127.53 points, or 2.24 per cent, to 5,815.73, shrugging off a huge surge in jobless claims in the US.

Instead, traders preferred to take heart from the G20 leaders offering support for the global economy, and held out hopes for good news from the UK Chancellor Rishi Sunak.

His announcement that self-employed workers will be able to claim similar levels of support to those in full-time roles is likely to be welcomed today by markets.

The pound jumped against the dollar by 2.3 per cent to $1.216 and was up against the euro by 0.97 per cent to €1.103.

The G20 said they will inject $5 trillion (£4.11tn) into the global economy, which played a role.

David Madden, market analyst at CMC Markets, explained: “The united front from the world leaders helped market confidence, because as far as the West is concerned, the battle is in its infancy.”

But Connor Campbell, analyst at Spreadex, said the US job figures, which showed a jobless rise of three million in a week, could have an impact down the line. “At the start of the year, that jobless claims reading was unimaginable. Today it actually fell short of some analysts’ topend estimate of four million.”

He added: “Regardless, it is a truly alarming figure whichever way you slice it, yet one that failed to send the markets into another downward spiral.”