BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks fell on Wednesday as the pound advanced in response to EU Chief Negotiator Michel Barnier's optimistic comments about a post-Brexit trade deal.
Barnier told the European Union parliament the EU was committed to making the necessary compromises required to agree a deal over coming weeks.
Worries about new tiered restrictions in parts of England due to a resurgence in novel coronavirus cases and the U.S. stimulus impasse also weighed on markets.
The benchmark FTSE 100 dropped 70 points, or 1.1 percent, to 5,821 after finishing marginally higher the previous day.
Postal service and courier company Royal Mail rose about 1 percent after launching a new parcel pick-up service across Britain.
Precious metals mining company Fresnillo slumped 4.2 percent after the company cut its full-year gold production guidance.
Segro declined 1.4 percent. The property investment and development company said it acquired a new warehouse park.
Centamin shares plunged almost 20 percent. The gold mining company posted lower gold production and sales for the third quarter compared with the previous quarter.
In economic releases, U.K. consumer price inflation accelerated in September as restaurant and café prices increased driven by the Eat Out to Help Out scheme, a government report showed.
Inflation climbed 0.5 percent annually in September, up from the 0.2 percent increase seen in August. That came in line with expectations.
Another official report showed that output prices continued to fall in September.
U.K. public sector net borrowing increased by GBP 28.4 billion from the last year to GBP 36.1 billion in September due to the substantial increases in borrowing amid the coronavirus pandemic, separate data showed. This was the third highest borrowing in any month since records began in 1993.
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