The government extended both the vacation regulation and the exemption from payment to support businesses
The FTSE 100 price rose 1.5% the day after investors pushed up the index to compensate for this morning’s losses
The index is about to secure the first bullish daily closing in six days
The price of the FTSE 100 has risen by around 1.5% despite the restrictions to be introduced in the UK. The government extended both the vacation regulation and the payment vacations.
Basic analysis: Government extends payment holidays
The UK Financial Services Authority today announced its decision to extend payment facilities for credit cards, car finance, personal loans and pledged goods before new measures to curb the spread of coronavirus come into force later this week.
The British government said it would reintroduce a nationwide ban in England starting Thursday.
The Financial Conduct Authority (FCA) issued a statement saying that those who have not yet received a payment deferral under guidance during the summer can apply for the payment deferral, which can last up to six months.
The regulator also said that consumers who have already applied for a payment deferral can apply for another one.
“Borrowers should use this assistance only when they need it,” the FCA said.
Those who have expensive short-term loans, such as payday loans, could apply for a one-month deferral, provided they had not previously applied.
“We will work with trade bodies and lenders to see how these proposals can be implemented as soon as possible, and will make another announcement shortly,” the FCA said.
Yesterday, the British government extended the leave of absence scheme to provide further support to businesses.
“Today the Prime Minister said the government’s Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough Scheme – will remain open until December, with employees receiving 80% of their current salary for unpaid hours up to a maximum of £2,500,” the government said in a statement.
“Under the extended scheme, the cost to employers of keeping employees in employment will be reduced compared to the current scheme, which expires today. This means that the extended leave program will be more generous to employers than in October.
Technical analysis: FTSE 100 rallies to compensate for losses
The FTSE 100 price is up about 1.5% from the day after investors pushed the index higher to compensate for this morning’s losses. As a result, the British blue-chip stock market index is on its way to securing its first bullish close in six days.
FTSE 100-day chart (TradingView)
The index is now approaching the broken support at 5700 and a breach above that level would open the door for a more sustained recovery. Alternatively, levels below 5500 should come into play if risk sentiment deteriorates further.
The United Kingdom will extend leave arrangements and exemptions for credit cards, car finance, personal loans and pledged goods to help borrowers affected by coronavirus.