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* BAT, Unilever, Tesco biggest boost to FTSE 100
* Pound slides on EU trade deal doubts
* Aston Martin slumps on weak outlook, stock offering
* FTSE 100 up 0.2%, FTSE 250 up 0.01%
(Updates to close)
By Susan Mathew
June 26 (Reuters) - A rally in consumer stocks and a
battered pound helped London's FTSE 100 outperform world stocks
at the end of a choppy week on Friday as investors weighed
optimism about a revival in business activity against a surge in
global coronavirus infections.
Broader Europe and Wall Street were firmly in the
red on fears of further restrictions to business activity which
could cast a pall on hopes of any economic recovery.
London's blue-chip FTSE 100 closed up 0.2% but a
defensive rally showed evidence of investor worry. British
American Tobacco, Reckit Benckiser, Unilever
and Tesco were among the biggest boosts.
The pound, meanwhile, slid on doubts about Britain's
trade pact with the European Union. This helped gains in some of
the internationally focused companies on the blue-chip index.
Investors will be watchful of the next round of Brexit talks set
to begin on Monday.
On the week, the FTSE 100 fell 3.2%. The index has recovered
more than 35% since March lows but is still down about 18% this
year. Researchers warn of a second wave of infections as the
government looks to ease further lockdown restrictions next
month.
"There are still big question marks over how willing
households will be to go out and spend if fear of the virus
lingers. And we are concerned that a second wave of unemployment
will reduce the ability of households to spend," said Ruth
Gregory, senior UK economist at Capital Economics.
"As a result, we suspect that the initial strong rebound
will peter out in the second half of 2020 and that the
government and the Bank of England will need to do more."
Britain's mid-cap FTSE 250 ended Friday flat.
Gains in online gambling firm 888 Holdings on upbeat
core earnings forecast, were offset by losses in some travel
stocks and carmaker Aston Martin which slipped after
issuing a weak forecast and announcing a stock offering.
(Reporting by Shashank Nayar in Bengaluru; Editing by Krishna
Chandra Eluri and Angus MacSwan)
