FTSE falters as Brexit hopes lift pound, offsetting good trade signals

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* FTSE 100 down 0.4%, FTSE 250 up 0.3%

* Brexit deal hopes lift sterling, hit exporters

* WPP, Burberry fall after European rivals cut forecast

Oct 11 (Reuters) - Britain's exporter-heavy FTSE 100 lagged
a trade sentiment-induced rally in global stocks on Friday, as
hopes that a Brexit deal may be clinched by the end of the month
lifted the pound and hit international firms.

The blue-chip index shed 0.4% with exporter stocks
such as Diageo and Unilever dragging the most,
as sterling firmed after Ireland sounded optimism on the chances
of Britain leaving the European Union in an orderly fashion. The
mid-cap FTSE 250 added 0.3% by 0702 GMT.

The index lagged the broader European benchmark,
which rose after U.S. President Donald Trump stirred hopes of a
trade agreement with China, calling the first day of talks "very
good".

The main index was also hurt by a near 4% drop in ad firm
WPP after French rival Publicis cut its sales
view for the second time, and a 3.4% fall in luxury brand
Burberry after German rival Hugo Boss cut
its annual forecast.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Bernard
Orr)