By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Direct Line Insurance Group PLC led U.K.
stocks higher for a second straight day on Thursday, while
investors more broadly were waiting for a speech by Bank of England
Governor Mark Carney later in the day.
The FTSE 100 index climbed 0.3% to 6,723.10, adding to a 0.5%
gain on Wednesday. The rest of the European markets were also on
the rise, after European Central Bank President Mario Draghi
reiterated that the Governing Council stands ready to "use
additional unconventional instruments" to fight off low inflation.
Economists widely expect the "unconventional" stimulus measures to
be a full-scale quantitative-easing program.
Carney: The U.K.'s central bank was also in the spotlight, with
BOE boss Carney slated to speak in Wales in the afternoon. Sam Fox,
analyst at Spreadex, said in a note that volatility in the pound
should be expected during the speech as "investors speculate on his
words." Generally, investors have been listening closely to
comments out to the BOE to try to gauge whether it will raise
interest rates this year or wait until 2015.
Movers: Shares of Direct Line Insurance Group led gainers in the
FTSE, climbing 2.9% after the insurer said it is selling its
international unit to Spanish insurer Mapfre SA for 550 million
euros ($705.62 million) and will return the proceeds to
shareholders.
Royal Bank of Scotland Group PLC (RBS) added 1.1% after the bank
said its Chairman Philip Hampton will step down during 2015 to
become new chairman at GlaxoSmithKline PLC (GSK). GSK shares were
up 0.8%.
On a more downbeat note, shares of Hammerson PLC dropped 3%
after the retail landlord said it will raise around 400 million
pounds ($652.8 million) by issuing new shares to buy 40% of
Highcross Shopping Centre in Leicester.
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