UPDATE 2-FTSE 100 bounces on Barclays earnings, but logs losses on the week

* Barclays jumps on strong quarterly profit
* UK's economic recovery fades in Oct. as pandemic flares up
* IHG slips on plunge in Q3 room revenue
* FTSE 100 rises 1.3%, FTSE 250 adds 1.2%,

(Adds comment; updates to close)
By Devik Jain
Oct 23 (Reuters) - London stocks jumped on Friday, boosted
by upbeat Barclays' earnings and rising hopes of a Brexit trade
deal before year end, but the blue-chip FTSE 100 still logged
its second weekly decline on concerns over fresh coronavirus
restrictions.
The FTSE 100 index .FTSE closed up 1.3%, with shares in
the British lender BARC.L jumping 7% as its consumer
businesses swung back to profit and provisions against bad loans
fell in the third quarter. The wider banks sub-index .FTNMX8350 added almost 5% with
gains in energy .FTNMX0530 , homebuilder .FTNMX3720 and aero
.FTNMX2710 stocks also helping the blue-chip index outperform
regional peers.
The domestically-focussed mid-cap FTSE 250 index .FTMC ,
considered a barometer for Brexit sentiment, ended 1.2% higher
after Reuters reported France is laying the ground for a
compromise on fisheries, one of the key sticking points in trade
negotiations between the European Union and Britain.
"There is a renewed enthusiasm to talk again. Perhaps there
will be concessions made and if there is some kind of agreement
going forward, that increases the chances of a deal," said
Susannah Streeter, senior investment and markets analyst at
Hargreaves Lansdown.
However, the blue-chip index still suffered a second
straight weekly loss on concerns over new coronavirus-led curbs
as cases surged, and Brexit trade deal-related uncertainty, with
data also pointing towards a faltering economic recovery.
The UK's composite PMI fell to a four-month low of 52.9 in
October, while consumer morale tumbled to its lowest level since
late May, surveys showed on Friday. "Today's UK data paint a picture of an economic recovery
that is now clearly at risk of losing steam," said Hugh Gimber,
global market strategist at J.P. Morgan Asset Management.
In company news, InterContinental Hotels Group Plc IHG.L
slipped 1.5% after the Holiday Inn-owner posted a plunge in
third-quarter hotel room revenue (RevPAR).