UPDATE 2-FTSE 100 snatches gains at the end of its worst week in a year

* FTSE 100 up 1.1%, FTSE 250 up 0.7%

* Gains seen across all sectors

* Drax jumps on report backup plan to get approval

* BP advances after announcing CEO transition plans
(Adds news items, analyst comment, updates to closing prices)

By Yadarisa Shabong, Muvija M and Shashwat Awasthi

Oct 4 (Reuters) - A sharp recovery in London's FTSE 100 led
by oil majors BP and Shell on Friday was not enough to stop the
index from recording its worst weekly performance in nearly a
year amid fears of an economic slowdown and risk of recession.

The index rose 1.1% after encouraging U.S. job data
calmed investors' nerves but the bourse still posted its worst
week since that of Oct. 12 last year.

The UK-oriented FTSE 250 climbed 0.7%, led by gains
in power generator Drax after sources told Reuters the
European Commission was set to approve Britain's roughly one
billion pound power backup plan.

Blue-chip peers SSE and Centrica also
gained.

A parade of weak readings on services and manufacturing
sectors from multiple major economies has left little doubt that
the U.S.-China trade war has constricted global growth.

However, a report that showed moderate U.S. job growth in
September and unemployment rate that dropped to a 50-year low,
helped soothe fears and spurred buying in stocks.

Investors also grew hopeful that central banks will step in
with further stimulus. The Federal Reserve - the world's biggest
central bank - has already cut interest rates twice this year.

"As for the Fed, this (U.S. job) report doesn't really shift
the needle too much – not so hot to force a rethink on cuts, but
not a disaster that could ramp expectations for more aggressive
easing," said Neil Wilson, analyst at Markets.com.

At home, investors remained worried about London's ability
to secure a Brexit deal with Brussels at a summit later this
month, with the state of the UK economy appearing to have
slipped into recession also adding to anxiety.

The FTSE index of 100 most valued UK companies had fallen as
much as 160 points below its 200-day moving average on Friday
despite gains and has lagged other major markets this year,
underlining the additional turmoil Brexit has brought on.

"There's precious little positivity around UK stocks -
Brexit uncertainty, profit warnings aplenty, CEO purges, weak UK
data and a slowing macro picture for the heavy weights exposed
to global growth adds up to a pretty disappointing near term
outlook for the FTSE," Wilson said.

In corporate news, BP became the latest blue-chip
company to name a new top boss as it said upstream business head
Bernard Looney would succeed CEO Bob Dudley, sending its shares
up more than 2%.

Tobacco giant Imperial Brands and retailer Tesco
also announced CEO departures this week.

LSE advanced nearly 3% after a Reuters report that
some of its investors had asked Hong Kong Exchanges and Clearing
to sweeten the takeover bid.

Insurers ended on a positive note after
Britain's markets watchdog threw down the gauntlet, saying they
could avoid mandatory pricing restrictions if they voluntarily
stop penalising loyal customers.

The sub-index earlier touched its lowest level since
February on fears of such restrictions.

(Reporting by Yadarisa Shabong, Muvija M and Shashwat Awasthi
in Bengaluru; Editing by Bernard Orr and David Evans)