UPDATE 2-London stocks slide as new coronavirus curbs dent mood

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)

* More English cities face tightest COVID-19 restrictions

* BoE expected to bolster bond-buying programme again

* EU-UK engaging 'intensively' to clinch a Brexit deal

* HSBC jumps on smaller-than-expected drop in quarterly
profit

* FTSE 100 down 1.1%; FTSE 250 drops 1.5%
(Adds comment; updates with closing prices)

By Devik Jain

Oct 27 (Reuters) - London stocks closed sharply lower for
the second straight session on Tuesday as worries about fresh
COVID-19 curbs across parts of England offset the impact of
progress in Brexit talks and of positive results from Europe's
biggest bank HSBC.

The blue-chip FTSE 100 index slipped 1.1% in choppy
trading, dragged lower by mining, energy
and insurance stocks.

The domestically-focussed FTSE 250 index slid 1.5%
with shares in online trading platform Plus500 Ltd
falling 8.2% to the bottom of the index on a dour outlook.

Uncertainty over a Brexit trade deal and concerns about the
financial fallout from coronavirus-related restrictions have
pressured British markets this month, with data also pointing
towards a faltering economic recovery.

The latest industry survey showed Britain's retail sales
this month fell to the lowest level since June, after hitting an
18-month high in September.

In the latest round of restrictions, Warrington in northwest
England was placed on the highest Tier 3 alert level, while
Nottingham in central England and three nearby towns would have
similar restrictions from Thursday.

"In recent months, the stock market rally has been driven by
easy monetary policy, fiscal stimulus measures and positive
developments in the fight against the COVID-19 pandemic," said
Milan Cutkovic, market analyst at Axi.

"Removing one of those pillars could leave markets on shaky
ground."

The Bank of England is expected to ramp up the size of its
asset purchase programme by a further 100 billion pounds on Nov.
5 to support a struggling economy, a Reuters poll of economists
found.

Meanwhile, the European Commission said the European Union
and Britain are engaging intensively to clinch a Brexit deal on
their future relationship.

In a bright spot, Asia-focussed HSBC Holdings Plc
jumped 3.4% after it signalled a pandemic-induced overhaul of
its business model.

Bloomsbury Publishing Plc gained 18.1% after the
Harry Potter publisher posted higher first-half profit and
resumed dividend payments.
(Reporting by Devik Jain in Bengaluru; editing by Uttaresh.V,
Aditya Soni and Barbara Lewis)