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* FTSE 100 flat
* Norway sovereign wealth fund ruling boosts oil majors
* Shire leads FTSE 100 on FDA drug approval
By Helen Reid
LONDON, Aug 24 (Reuters) - Britain's major stock indexfaltered on Friday, propped up by Shire and oil stocks, whileinvestors awaited a speech by the U.S. Fed Chair and digestedU.S.-China trade talks which delivered no breakthrough.
The FTSE was on track to eke out a 0.1 percent gain in aweek the British government set out plans for a possible no-dealBrexit and as sterling hovered near 11-month lows against theeuro.
It hovered between flat and up 0.1 percent by 0830 GMT, withShire and Antofagasta the top gainers.
Trade war was still front and centre of investors' mindsafter inconclusive talks between U.S. and Chinese officials, andfocus turned to a speech by Federal Reserve Chairman JeromePowell at Jackson Hole at 1400 GMT.
Oil majors Royal Dutch Shell and BP weregave the biggest boosts to the index, rising after a Norwegiangovernment-appointed commission ruled Norway's sovereign wealthfund should stay invested in energy stocks.
Shire shares gained 2.4 percent after the U.S. Foodand Drug Administration approved a first-of-its-kind drug,Takhzyro, to treat patients suffering from a rare hereditarydisease causing swelling.
The approval was largely expected, according to UBS, but arelief for the market which perceived the drug as very importantfor Shire's potential acquisition by Takeda.
"With this morning's announcement from Shire, the nervesshould evaporate." they wrote.
Antofagasta shares rose 2.3 percent after RBCupgraded it to "outperform", and as London copper pricesrecovered, with the metal on course for its best week in four.
"We expect the shares to regain a premium valuation over thecoming months possibly enhanced by its copper exposure, whichhas significantly underperformed iron ore by 10 percentyear-to-date," wrote RBC analysts.
Housebuilders Persimmon, Berkeley, BarrattDevelopment and Taylor Wimpey were among theworst-performing after data showed mortgage approvals fell inJuly despite appetite for remortgaging ahead of an expected Bankof England rate rise.
On the FTSE 250, travel operator On The Beachwas the top gainer after Berenberg upped its pricetarget on the stock, praising its model of not speculativelypre-buying hotel beds or plane seats.
"In a weaker demand environment OTB 1)is not burdened withdistressed inventory being sold at a loss; 2) has low fixedoverheads; and 3) sees its main cost, online marketing,automatically fall," wrote Berenberg analysts.
Petrofac shares also rose 1.4 percent to theirhighest level in 15 months after the oil services firm agreed tosell its North Sea assets to Ithaca Energy in a deal worth up to$292 million.
Playtech shares gave back some of Thursday's gains,falling 1.5 percent after a strong rally on half-year results.
Land and property developer Henry Boot rose 3.5percent after saying it is confident in meeting its expectationsfor the full year and for 2019.
"Despite ongoing economic uncertainty surrounding Brexitnegotiations, the outlook for the business remains robust,"wrote Peel Hunt analysts.
(Reporting by Helen Reid, Editing by)
BP (BP.)
