By Helen Reid
LONDON (Reuters) - The FTSE 100 index faltered on Friday, but was set to end the week in positive territory on the back of a global rally after US Fed officials suggested monetary policy tightening would go ahead at a slower pace.
The FTSE 100 (FTSE) was down 0.1 percent by 0840 GMT (9.40 a.m. BST), in line with mid-caps (FTMC). Blue-chips were set for a 0.7 percent weekly gain, their best performance since late May.
Drugmaker AstraZeneca (L:AZN) continued Thursday's slide, down 1.6 percent due to uncertainty around reports that CEO Soriot was preparing to leave the company.
A spokeswoman said the company declined to comment on the media report.
Retailer Tesco (L:TSCO) was among top gainers, tracking Europe-wide strength among retailers (SXRP) and consumer goods firms (SXQP), which both gained 0.2 percent.
Royal Mail (L:RMG) shares fell 1.4 percent after it replaced its pension plan, giving employees a choice between defined benefit or contribution pension scheme after opposition from trade unions.
Among mid-caps, Carillion (L:CLLN) saw some relief from heavy losses this week, rising 6 percent to the top of the mid-caps after the crisis-hit construction and support services contractor hired HSBC as joint financial adviser and corporate broker, amid speculation it is preparing a rights issue.
It was still on track for a 70 percent drop in market value for the week.
Property firm Derwent London (L:DLN) was among top European gainers, after Exane BNP Paribas (PA:BNPP) raised the stock to an 'outperform' rating, citing the firm's 'defensive' rents and strong pipeline. It expressed optimism over the prospects for a sector seen as particularly vulnerable to Brexit.
"Values in the London office market have barely moves post-Brexit [vote] thanks to abundant investment market liquidity (particularly from Asia) and resilient take-up," its analysts said in a note, adding firms have recycled capital, deleveraged and payed special dividends.
Exane analysts forecast an average 8 percent decline in London office rents by 2019 - "a gradual weakening rather than a sharp correction", they said.
Derwent peer NewRiver (L:NRRT) also gained 2 percent, after its first-quarter results showed 71 new lettings agreed, and occupancy remained high.
Emerging markets-focused asset manager Ashmore (L:ASHM) fell after reporting a 5 percent rise in its fourth-quarter assets, boosted by new client cash. Despite the results being in line with forecasts, the shares fell 2.8 percent to the bottom of the mid-caps.
"This was Ashmore's second consecutive quarter of inflows, marking the first time since 2013," said UBS analysts.
"That said, due to the increase in the GBP/USD rate during the quarter, the growth of assets under management measured in sterling was a more moderate 1.1 percent quarter-on-quarter."