UPDATE 2-British mid-caps gain for fourth day as Brexit trade deadline looms

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* Brexit talks enter final leg
* Oil shines as U.S. stockpiles fall
* BoE ready to tolerate no-deal inflation spike
* WPP rises on upbeat sales outlook
* FTSE 100 down 0.3%, FTSE 250 adds 1%

(Updates to market close)
By Medha Singh
Dec 17 (Reuters) - London's mid-cap index rose for a fourth
straight day on Thursday with investors believing the UK and
European Union would bridge the gaps to a post-Brexit trade
deal, while advertising firm WPP jumped after an upbeat sales
forecast.
The domestically focussed FTSE 250 .FTMC gained 1% as the
European Union's chief negotiator said progress had been made.
The Bank of England said it was ready to tolerate an
inflation spike in the event of a trade deal not being reached
but kept its stimulus unchanged. "The (Monetary Policy) Committee continues to assume that a
free trade deal will be agreed and ratified in time for it to
come into effect immediately after the transition period ends on
31 December," said Daniel Vernazza, chief international
economist at UniCredit Bank in London.
"While progress has been made in the negotiations and we
continue to expect a deal to be done before year-end, there is
no white smoke yet."
The gridlocked negotiations have made investors anxious
about economic growth in 2021 after the COVID-19 pandemic
hammered business activity this year. A deal would ensure the
goods trade that makes up half of annual EU-UK commerce remains
free of tariffs beyond Dec. 31.
The blue-chip FTSE 100 .FTSE gave up early gains to dip
0.3%, weighed down by losses in consumer staples. Meanwhile,
U.S. stock indexes climbed to a peak on optimism about fiscal
stimulus. .N
WPP WPP.L , the world's biggest advertising company, rose
4.2% after saying it expected net sales to return to
pre-pandemic levels by 2022, a year earlier than
expected. SSP Group SSPG.L , the owner of Upper Crust and Caffe
Ritazza snack chains, dropped about 2.7% as it issued a grim
sales outlook.