The FTSE 100 has outpaced its European counterparts this Thursday after the UK government announced it was granting all retail, leisure, and hospitality businesses a one-year business rates holiday to the tune of 100%.
Announcing this move was UK Chancellor of the Exchequer Rishi Sunka, who indicated that this was part of measures to enable small businesses to survive the coronavirus pandemic.
However, Tesco and J Sainsbury have indicated their willingness to forgo this relief, showing their superior financial strength above other companies operating in the retail space. Aldi is also planning to repay the business rates relief it received.
The FTSE 100 is up 0.23% as at the time of writing.
The FTSE 100 index builds on yesterday’s bullish close to attempt a move towards 6514.8, which remains the resistance to beat for buyers. A break of this level takes the FTSE 100 to levels not seen since March 2020’s pandemic-related slump. 6599.2 would be the logical target, with 6739.0 and 6872.2 lining up as additional targets to the north.
On the flip side, a rejection at 6514.8 opens the door for another pullback move, retesting the 6405.3 and 6325.3 price levels as the closest support targets. 6263.3 and 6200 complete additional downside targets in the near term if a decline continues.
