(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* UK-EU to resume Brexit trade talks on Monday
* Galliford surges on return to profitability forecast
* Whitbread jumps on Barclays' upgrade to 'overweight'
* FTSE 100 down 0.4%, FTSE 250 falls 0.2%
(Adds comment; updates to close)
By Devik Jain
Nov 13 (Reuters) - London's FTSE 100 retreated on Friday on
concerns over rising COVID-19 infections and as a stronger pound
pressured exporters, although the index still logged its best
weekly gain since April on hopes of an effective vaccine.
The blue-chip index closed 0.4% lower, as industrial
stocks declined and currency moves weighed on big
dollar-earnings stocks such as consumer staples.
British American Tobacco, Unilever Plc,
Reckitt Benckiser and Diageo Plc fell between
0.5%-1.6%.
The domestically-focused mid-cap FTSE 250 index
ended 0.2% lower.
"After the vaccine-infused euphoria at the start of the week
a dose of reality seems to have been administered to the
market," said AJ Bell investment director Russ Mould.
"Clearly the COVID-19 crisis is not at an end despite the
positive news announced by Pfizer and counterparts in Russia."
However, both the indexes posted their second straight week
of gains, aided by new local stimulus measures and as U.S.
drugmaker Pfizer Inc said on Monday its COVID-19 vaccine
was 90% effective.
Meanwhile data showed Britain's COVID-19 reproduction "R"
number has fallen to 1.0-1.2 and might be below 1 in some parts
of the country in sign epidemic is slowing.
On the Brexit front, Britain and the European Union will
resume trade talks in Brussels on Monday after so far failing to
close gaps over competition rules and fisheries.
"Most think that talks realistically can’t stretch much
further without causing some degree of logistical problems,"
said James Smith, developed market economist at ING.
"That said, this is politics at the end of the day and
neither side will want to be the one seen to end negotiations."
In company news, construction firm Galliford Try Holdings
Plc surged 26.1% after forecasting a return to
profitability in the first half of this financial year.
Premier Inn-owner Whitbread Plc rose 3.6% after
Barclays upgraded the stock to "overweight", while Rolls-Royce
jumped 4.1% after JP Morgan raised its target price on
the stock.
(Reporting by Devik Jain in Bengaluru; editing by Uttaresh.V,
Subhranshu Sahu, Kirsten Donovan)
