LONDON: London stocks closed higher on Tuesday as investors remained hopeful of a trade deal with the European Union by year-end, although gains were capped by concerns over tougher coronavirus lockdowns in parts of England. The blue-chip FTSE 100 closed 0.1% up, led by personal goods makers, food and drug retailers, real estate investment trusts and travel and leisure stocks.

The domestically focused mid-cap FTSE 250 ended 0.4% higher, boosted by soft drinks maker Britvic Plc, which jumped 6.4% as it forecast annual adjusted operating profit ahead of market expectations. In company news, airlines group IAG rose 6.9% as rapid outbound Covid-19 testing for passengers was launched at London's Heathrow Airport in an effort to re-open restricted routes and boost traffic for airlines.

Bellway Plc fell 3.7% after the homebuilder reported a 64.3% drop in annual pretax profit. Petra Diamonds Ltd tumbled 17% after the diamond miner abandoned plans to sell the business in favour of a debt-for-equity restructuring.

Britain said the situation regarding trade talks with the EU remained unchanged, as both sides exhorted the other on Tuesday to compromise to avoid a fast-approaching disruptive finale to the five-year Brexit drama that would add to the economic pain from the coronavirus crisis.

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