FTSE 100 bounces on Barclays earnings, but logs losses on the week

Reuters

Published Oct 23, 2020 08:19

Updated Oct 23, 2020 17:45

By Devik Jain

(Reuters) - London stocks jumped on Friday, boosted by upbeat Barclays ' earnings and rising hopes of a Brexit trade deal before year end, but the blue-chip FTSE 100 still logged its second weekly decline on concerns over fresh coronavirus restrictions.

The FTSE 100 index (FTSE) closed up 1.3%, with shares in the British lender (L:BARC) jumping 7% as its consumer businesses swung back to profit and provisions against bad loans fell in the third quarter.

The wider banks sub-index (FTNMX8350) added almost 5% with gains in energy (FTNMX0530), homebuilder (FTNMX3720) and aero (FTNMX2710) stocks also helping the blue-chip index outperform regional peers.

The domestically-focussed mid-cap FTSE 250 index (FTMC), considered a barometer for Brexit sentiment, ended 1.2% higher after Reuters reported France is laying the ground for a compromise on fisheries, one of the key sticking points in trade negotiations between the European Union and Britain.

"There is a renewed enthusiasm to talk again. Perhaps there will be concessions made and if there is some kind of agreement going forward, that increases the chances of a deal," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown (LON:HRGV).

However, the blue-chip index still suffered a second straight weekly loss on concerns over new coronavirus-led curbs as cases surged, and Brexit trade deal-related uncertainty, with data also pointing towards a faltering economic recovery.

The UK's composite PMI fell to a four-month low of 52.9 in October, while consumer morale tumbled to its lowest level since late May, surveys showed on Friday.

"Today's UK data paint a picture of an economic recovery that is now clearly at risk of losing steam," said Hugh Gimber, global market strategist at J.P. Morgan Asset Management.