By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K.'s FTSE 100 index closed at its
highest level in almost seven weeks on Thursday, with Smith &
Nephew and AstraZeneca leading stocks higher after well-received
corporate news.
The London benchmark advanced 0.4% to end at 6,703, marking its
highest closing level since March 7.
The FTSE briefly dipped into negative territory in the afternoon
after news reports said Russia launched military exercises near the
Ukraine border in response to the latest clashes, in which at least
five pro-Russian activists were killed, in eastern Ukraine. Given
the "heightened risk" of a Russian attack, Ukraine put its
anti-separatist operations in the eastern town of Slovyansk on
pause, a senior security official said, according to The Wall
Street Journal.
Smith & Nephew leads gainers
Shares of Smith & Nephew PLC led gainers in the London
index, up 3.4%, after the medical-equipment company released
favorable results from a new clinical study of its TRUCLEAR
Hysteroscopic System -- a device to enable the removal of fibroids
and polyps. The firm further benefited from an upbeat trading mood
in drug sector after Zimmer Holdings Inc. (ZMH) agreed to buy
fellow orthopedic device maker Biomet Inc. for about $13.35 billion
in cash and stock.
Also in the U.K. pharma industry, shares of AstraZeneca PLC
(AZN) climbed 3.3% after the drug maker confirmed its 2014
financial guidance. The company, however, posted a fall in
first-quarter profit as sales of its best-selling drugs continued
to be squeezed by generic competition.
Earlier in the week, AstraZeneca was among major advancers after
a report that Pfizer Inc. (PFE) had approached the U.K. drug maker
about a possible merger.
Anglo American PLC picked up 1.3%, after the miner said output
rose in the first quarter, with iron-ore production up 10% due to
solid performances from its two South African iron-ore mines.
Other mining firms tracked Anglo American higher, with shares of
Rio Tinto PLC (RIO) rising 0.9%, and BHP Billiton PLC (BHP) 0.5%
higher.
Barclays PLC (BCS) shares gained 1.3%, shaking off the bank's
warning that a slowdown in fixed-income trading would push adjusted
first-quarter profit lower than in the same quarter last year.
Unilever slides
On a more downbeat note in London, shares of Unilever PLC (UL)
dropped 1.7% after the consumer-products giant reported a fall in
first-quarter sales, as currency weakness across emerging markets
continued to weigh on its performance.
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