By Simon Kennedy, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved mostly higher
Thursday, though gains for the benchmark index were limited by
shares in oil giant BP PLC, which fell after the U.S. government
filed a civil lawsuit over the Gulf of Mexico oil spill.
The FTSE 100 index rose 0.3% to 5,901.24, driven by gains for
miners and drug stocks.
Other European markets edged higher as EU leaders prepared to
meet at a summit in Brussels to discuss the sovereign-debt
crisis.
BP (BP) was the biggest faller on the index, dropping 2.4%.
The U.S. government said late Wednesday it is suing the company
and eight other defendants, alleging that negligence and lax safety
procedures led to the Gulf of Mexico oil spill.
"While not wholly unexpected, the move by the U.S. Justice
Department will nevertheless shine the spotlight once again on the
risks associated with deepwater drilling in particular, and
insurance for any potential liabilities," said Goodbody
Stockbrokers analyst Gerry Hennigan.
Separately, the latest round of U.S. embassy cables released by
WikiLeaks reportedly highlight similarities between the Gulf of
Mexico disaster and a little-reported major gas leak at BP's
operations in Azerbaijan in 2008.
Other oil stocks were mostly higher, including BG Group PLC ,
which gained 0.7% after the company said the 11th well drilled in a
concession in the Santos Basin offshore Brazil was successful.
Elsewhere in the U.K. Thursday, mining stocks were mostly
higher, including a 1.2% rise for Rio Tinto PLC (RIO) after the
company said a sale of shares in Cloud Peak Energy Inc (CLD) could
generate gross proceeds of around $500 million for the group.
Among other miners, Vedanta Resources PLC .rose 1.1% and Xstrata
PLC climbed 0.6%.
Pharmaceutical stocks added to the previous session's gains,
which were driven by Novartis' (NVS) deal to acquire the remaining
stake in Alcon Inc. (ACL) and restart its share buyback
program.
Hopes of cash returns from other drug companies have lifted the
sector, with GlaxoSmithKline PLC (GSK) rising 1% on Thursday.