By Carla Mozee, MarketWatch

U.K. stocks gained ground Thursday, with blue chips holding at a three-week high as commodity and defense shares advanced.

The FTSE 100 rose 0.7% to 6,380.66, heading toward its highest close since Nov. 4. The index on Wednesday climbed 1% (http://www.marketwatch.com/story/uk-stocks-move-higher-ahead-of-british-spending-review-2015-11-25), led by housing stocks following a government plan to boost spending in the sector.

The mining group on Thursday led all sectors higher, with gains for metals producers coming alongside a more than 2% jump in copper futures (http://www.marketwatch.com/story/copper-prices-rally-on-reports-china-will-probe-short-selling-2015-11-26) . Chinese regulators may be looking into short-selling of copper and other metals, while metals suppliers in China plan to meet this week to discuss how to respond to the slide in prices for the industrial metals, according to a Bloomberg report (http://www.bloomberg.com/news/articles/2015-11-26/nickel-leads-metals-surge-as-china-smelters-said-to-discuss-cuts). Copper prices have hit six-year lows this year, and have lost about 26% in 2015.

Topping the FTSE 100 was commodities trader and miner Glencore PLC (GLEN.LN) as shares tacked on 4.9%. Its shares this year have tumbled 68% this year, in part on worries the slowdown in China's economy will hurt demand for metals.

Copper producer Antofagasta PLC (ANTO.LN) picked up 3.4%, precious metals miner Fresnillo PLC (FRES.LN) moved up 3% and Anglo American PLC (AAL.LN) rose 2.9%. Rio Tinto PLC's (RIO) gain was pared to 0.3%.

But iron ore heavyweight BHP Billiton Ltd. (BLT.LN) shares fell 2.3%, sitting at the bottom of the FTSE 100 as the company refuted claims (http://www.marketwatch.com/story/bhp-billiton-refutes-un-toxic-dam-spill-findings-2015-11-26) about the presence of toxic chemicals in waste from a dam that failed at a mining operation jointly owned by BHP.

Defense shares: U.K. Prime Minister David Cameron outlined in parliament his case for launching airstrikes (http://www.marketwatch.com/story/britains-prime-minister-argues-for-uk-launch-of-airstrikes-in-syria-2015-11-26) against terrorist group ISIS in Syria. Cameron could hold a vote on the issue as early as next week.

Shares of BAE Systems PLC (BA.LN) gained 2.3% and combat training systems maker Meggitt PLC (MGGT.LN) moved up 0.5%. Rolls-Royce Holdings PLC (RR.LN), however, fell 1.2%, on course for their first loss in five sessions.

Movers: Water company Severn Trent PLC (SVT.LN) rose 0.3% following its report that half-year profit rose while the number of customer complaints fell (http://www.marketwatch.com/story/severn-trent-profit-up-as-customer-complaints-fall-2015-11-26).

Tesco PLC (TSCO.LN) shares rose 0.5%. The supermarket chain operator said it's reached a $12 million (GBP7.9 million) agreement (http://www.marketwatch.com/story/tesco-to-pay-12-million-to-settle-us-lawsuit-2015-11-26) to settle a class action lawsuit in New York. Holders of Tesco's American depositary receipts, or U.S.-listed shares, had alleged breaches of certain federal securities laws related to Tesco's overstatement commercial income. The overstatement was announced in September 2014.

Equity trading in the U.S. was closed Thursday for the Thanksgiving Day holiday. Read: When do U.S. markets close during Thanksgiving week? (http://www.marketwatch.com/story/when-do-markets-close-around-thanksgiving-2015-11-23)

 

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(END) Dow Jones Newswires

November 26, 2015 09:55 ET (14:55 GMT)

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