UK Stocks - Factors to watch on Sept 15

 

Britain's top share index is seen opening 7-10 points, or 0.2 percent higher by financial bookmakers on Tuesday, adding to strength in the previous two sessions, as gains in Asian and U.S. equity markets illustrated resilient investor confidence.

The FTSE 100 is seen rising for a third straight day after shaking off early losses to gain 7.38 points, or 0.2 percent on Monday, closing at 5,018.85.

The UK index is up 45 percent since touching a six-year trough in March, but is still 7.3 percent below the level it was before the collapse of Lehman Brothers a year ago today.

House prices in England and Wales rose for the first time in more than two years, the latest in a raft of data to indicate that the economy is starting to recover.

Investors will watch UK inflation data, released at 0830 GMT for further evidence on how the economy is faring and the outlook for interest rates.

The Royal Institution of Chartered Surveyors said its seasonally adjusted balance of surveyors reporting a rise in prices in the last three months, versus those recording a fall, was +10.7 in August from an upwardly revised -5.7 in July.

However investors will eye further developments in a trade spat between China and the U.S. after the latter's decision to impose duty on Chinese tyres was labelled an abuse of World Trade Organisation safeguard measures by the Chinese commerce ministry on Tuesday.

Banks will be watched after a Financial Times report that UK Finance Minister Alistair Darling plans to force the country's banks to draw up 'livingwills' that would allow them to be dismantled more easily in the event of another financial crisis.

* Nikkei ekes out gains in choppy trade, JAL lower

* Wall St gains as merger activity boosts mood

* Dollar edges up vs yen, hovers above 7-mth low

* Treasuries-Profit-taking after five-week rally

* Asia stocks edge up on exporters, dollar drifts

* Gold steadies at $1,000/oz a day after retreat

* Copper firms as dollar wilts, demand woes cap gains

* Oil steady below $69 on strong equities, weak dollar

UK stocks to watch on Tuesday are:

KRAFT FOODS

Kraft Foods plans to hold talks in coming weeks with British bid target Cadbury that may lead to a new takeover offer.

RIO TINTO

The world's second largest miner is to sell a 56 percent stake in the cables division of its Alcan Engineered Products unit to U.S. investment firm Platinum Equity for an undisclosed sum.

The mining giant sees its two Peruvian copper projects needing investments of about $5.1 billion according to a source close to the matter.

BT

The telecoms group enlisted 500 temporary workers after employees at its Openreach division refused to work more flexible hours, the Independent said.

CARILLION

Carillion is to sell Enviros, its environmental consulting division, in a move that is expected to be the last major divestment from its 570 million pound acquisition of Alfred McAlpine, the Financial Times said.

BP

The oil giant's 475,000-barrel-per-day Texas City refinery is back to normal after losing steam power on Friday, a source familiar with refinery operations said on Monday.

INDEPENDENT NEWS & MEDIA

The newspaper group's second largest shareholder said equity holders in the publishing group should be presented with a restructuring plan before it agrees any refinancing deal with bondholders.

ASHMORE GROUP

The fund management group is releasing its preliminary results.

DEBENHAMS

The retailer is releasing a trading update.

DUNELM

The retailer releases its preliminary results.