FTSE falls, posts strongest week since August

By Alistair Smout LONDON (Reuters) - Britain's top share index fell on Friday but posted its strongest week since August, with concerns about the global economy and the spread of Ebola taking the steam out of a recent rally. The FTSE 100 closed down 0.5 percent at 6,388.73 points. It was still up 1.2 percent for the week, extending a rebound from 15-month lows hit last week. Concern about global growth has been behind much of the recent decline, and miners fell 1.8 percent, hit as the price of copper dropped on concerns over China's economy. Finance stocks also dipped after reports that 25 banks within the neighbouring euro zone, which has also seen disappointing economic data in recent weeks, would fail a European Central Bank "stress test". The fall took the index below the technically significant 6,400 level -- an important support for the index that was regained earlier this week. Fawad Razaqzada, technical analyst at Gain Capital, said that the results of the stress test, due on Sunday, were one of the factors that made the market's direction heading into next week unpredictable. But he added that the close below 6,400 indicated further falls were likely. "We broke above 6,400 yesterday but we're struggling to climb further above that level ... we could see another leg lower, towards 6,300, near the low in October 2013, and this month's low of 6,070." On Friday, airlines and hotel stocks were hit by news that a New York City doctor had tested positive for the Ebola virus. The travel and leisure sector was down 0.6 percent, and has been sensitive to the spread of Ebola, dropping to a two-year low earlier this month. The latest news stopped a rally in the sector in its tracks, although it remains up 3.5 percent for the week. The doctor, who treated Ebola patients in West Africa, became the first person to be affected by the virus in America's largest city, raising fresh fears about its spread. "There was a sense earlier in the week that, with no further Ebola-related scare stories, the weakness in travel and cruise stocks was viewed by some as a potential investment opportunity. But the news out of New York has changed the game again," said Jeremy Batstone-Carr, a market analyst at Charles Stanley. "Going into travel and leisure may be premature. But while it's a risk that's rising on the agenda, it's not necessarily big enough, at this point, to derail the broader FTSE." The index got some mid-session help from pharmaceutical company Shire, which rebounded from an early fall to rise 4.1 percent, making it the top FTSE riser, after reporting results at 1200 BST. The company raised its guidance for full-year earnings to underline its strong prospects as a standalone company after AbbVie Inc officially ditched its $55 billion purchase of the group on Tuesday. (Editing by Hugh Lawson)