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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