London stocks set for weekly loss; Indivior jumps

British shares dropped on Friday and were set to close the week lower as fresh lockdowns and rising virus cases dampened hopes of a swift economic recovery, while drugmaker Indivior gained on higher revenue forecast.

The British economy will take more than two years to recover to its pre-coronavirus level, a Reuters poll found, with more than 70 economists saying it would contract 1.4% this quarter.

The blue-chip FTSE 100 index fell 0.5%, with mining and construction stocks declining the most.

The UK economy shrank by 2.6% in November, its first monthly fall in output since the depths of an initial COVID-19 lockdown in April, as new movement restrictions were imposed, but the drop was much lower than the average forecast.

Aircraft parts supplier Meggitt gained 3.0% after it said the recent launch of COVID-19 vaccines and pent-up demand could support a recovery in civil aviation this year.

Indivior Plc gained 6.2% after raising its annual revenue forecast, while AstraZeneca slipped 0.3% even after its cancer drug Imfinzi received approvals in Europe and Britain.