UPDATE 2-FTSE 100 leaps to five-month high on vaccine optimism

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* Flutter, BAE Systems jump on raising profit forecast
* Workspace slips on first-half loss, dividend push back
* FTSE 100 up 1.4%, FTSE 250 adds 1.6%

(Updates to close)
By Devik Jain
Nov 11 (Reuters) - London stocks jumped on Wednesday,
logging nearly 8% gains this week, as optimism about an
effective COVID-19 vaccine offset concerns over surging
coronavirus cases and a deadlock in Brexit trade talks with the
European Union.
The blue-chip FTSE 100 index .FTSE closed up 1.4%,
touching its highest level since June 10, with British Airways
owner IAG ICAG.L rising 8% after Goldman Sachs upgraded the
stock to 'buy'. A weaker sterling also boosted dollar earners such as
AstraZeneca Plc AZN.L , British American Tobacco Plc BATS.L
and Unilever Plc ULVR.L and HSBC Holdings Plc HSBA.L . GBP/
The domestically focused mid-cap FTSE 250 .FTMC ended 1.6%
higher, boosted by financial .FTNMX8770 and real estate
.FTUB8600 stocks.
"This week's news on a vaccine, while welcome, does not
change the fact that France, Germany and the UK are still in the
middle of partial economic lockdowns," Michael Hewson, chief
market analyst at CMC Markets, wrote in a note.
"However, for now markets appear content to ignore this and
are focusing on the potential green pastures of a post-pandemic
world, with a workable vaccine."
After falling nearly 5% in October, the FTSE 100 is up more
than 14% this month, outperforming its U.S. and European peers
as a slew of stimulus measures and positive vaccine data
supported hopes of a sooner-than-expected economic recovery.
England's Deputy Chief Medical Officer Jonathan Van-Tam said
the country was ready to roll out a vaccine once regulators
approved it as safe, as it grapples with more than 61,000
COVID-related deaths, Europe's highest toll. Brexit news also drew attention with Prime Minister Boris
Johnson saying he was hopeful a trade deal with the EU could
still be agreed, but that Brussels needed to understand
Britain's priorities. Workspace Group WKP.L slipped 2.5%, after it swung to a
first-half loss and deferred a decision on full-year dividend.

Online betting group Flutter Entertainment FLTRF.L and
defence company BAE Systems Plc BAES.L jumped 5% and 2.5%
respectively, after they raised their annual earnings forecast.