By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- British stocks climbed out of negative
territory on Thursday, as miners rallied along with firmer metals
prices, while shares in Royal Dutch Shell PLC dropped following
reports of an oil sheen in the Gulf of Mexico.
The FTSE 100 index added 0.8% to 5,678.35, after trading as low
as 5,602.56 earlier in the day.
The index tracked gains in the broader European stock market and
took off as stocks opened higher on Wall Street.
Miners boosted the U.K. stock market and followed solid gains
for most metals prices. Rio Tinto PLC (RIO) added 4.2%, Fresnillo
PLC gained 2.7%, BHP Billiton PLC (BHP) rose 2.6% and Kazakhmys PLC
advanced 2.9%.
Also supporting the U.K. index, GKN PLC added 4.8% after Credit
Suisse lifted the stock to outperform from neutral.
Rolls-Royce Holdings PLC took on 2.1%. The power-systems firm
said it won a contract to supply power and propulsion systems for
the two latest vessels in the U.S. Navy's Littoral Combat Ship
program.
Temperature-control supplier Aggreko PLC climbed 2.8% as it said
it started the year on a very strong note and underlying group
revenue jumped 21% in first quarter.
Adding pressure in London, Royal Dutch Shell (RDSB) gave up 1.3%
after the firm said late Wednesday that a light oil sheen had been
observed in the central portion of the Gulf of Mexico, where the
oil group operates. Shell said it has sent an oil-spill response
vessel to the location and has requested flights to monitor the
area. The source of the sheen is unknown.
On the macroeconomic front, trade data for the U.K. showed that
the nation's trade deficit widened in February to the highest level
since September, as exports dropped.
"The U.K.'s scope for an export-led recovery took a further set
back today, as the trade deficit widened unexpectedly," said Chris
Williamson, chief economist at Markit, in a note. "The monthly data
are very volatile, but it is also disappointing to see the
three-month trend--which acts as a more reliable guide to the trade
pattern--also deteriorating."