* AstraZeneca biggest drag on FTSE 100, retreats from record
peak
* Ted Baker surges after quarterly earnings update
* Ladbrokes owner slumps as UK tax office expands probe
* BHP falls on warning of demand hit
* Energy majors gain on strong oil prices
(Updates to close)
By Sagarika Jaisinghani and Ambar Warrick
July 21 (Reuters) - London midcap stocks tracked European
markets higher on Tuesday after bumper stimulus measures from
the European Union, while a slight pull-back in the healthcare
sector on uncertainty over a coronavirus vaccine weighed on the
blue-chip index.
The mid-cap FTSE 250 closed 0.7% higher at a
two-week peak, tracking gains in European shares after
EU leaders agreed on a stimulus package to bolster economic
growth through the COVID-19 pandemic.
The blue-chip FTSE 100 ended up 0.1%, as gains in
energy were offset by drugmaker AstraZeneca. The stock
retreated from life-time highs after the lead developer of its
vaccine expressed caution over when the vaccine could be rolled
out.
Positive data from a series of vaccine tests had driven
stocks higher on Monday. Local stocks have also been cheered by
the British government's relaxation of virus-driven curbs on
activity to try to drive an eventual economic recovery.
"A vaccine could provide a more durable solution to the
coronavirus crisis, but we have now learned enough about the
virus to say that we think policymakers are unlikely to
re-impose national lockdowns to control the spread of COVID-19,"
UBS analysts wrote in a note.
The focus has turned to quarterly corporate earnings updates
to gauge the pace of a post-pandemic business recovery.
BHP Group, the world's largest miner, and rival Rio
Tinto weighed on the FTSE 100 after the former reported
higher quarterly iron ore output, but warned of a hit to demand
for the material from the outbreak.
Ted Baker soared 14.4% after the struggling fashion
retailer said it performed better than expected in the 11 weeks
to July 18.
Ladbrokes owner GVC Plc marked its worst day since
early-April after saying British tax authorities had expanded an
investigation into the gambling company's former online business
in Turkey to include unidentified entities within the group.
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Sherry Jacob-Phillips and Barbara Lewis)
