By Simon Kennedy, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved mostly higher
Thursday, though gains for the benchmark index were limited by a
decline in shares of oil giant BP PLC, sparked by a civil lawsuit
filed by the U.S. government over the Gulf of Mexico oil spill.
Other European markets held broadly steady as European Union
leaders prepared to convene in Brussels to discuss the
sovereign-debt crisis. See Europe Markets.
The FTSE 100 index rose 0.2% to 5,891.36, helped by gains for
some miners and drug stocks.
BP (BP) was the biggest decliner in the index, dropping
1.7%.
The U.S. government said late Wednesday that 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 highlighted 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 advanced, 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., mining stocks were mostly higher,
including a 0.4% 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 about $500 million for the group.
Vedanta Resources PLC rose 1.1%, and Xstrata PLC climbed
0.7%.
Pharmaceutical stocks added to the previous session's gains,
which were driven by Novartis AG's (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 1.1% Thursday.
Shares of Serco Group PLC were the strongest performers on the
main index, rising 3.1% after the outsourcing company said it
remained on track to deliver strong organic revenue growth.