UK Stocks - Factors to watch on Dec 9

Britain's FTSE 100 index is seen opening 9-10 points, or 0.2 percent, higher on Wednesday, according to financial bookmakers, steadying after Tuesday's falls with all eyes directed towards the last pre-budget report of this parliament, to be unveiled at 1230GMT.

The British blue-chip index closed 87.53 points, or 1.7 percent, lower on Tuesday at 5,223.13 as banks fell sharply on fresh worries over their exposure to Dubai debt and concerns ahead of the pre-budget report.

Finance minister Alistair Darling is expected to stake his government's future on tax rises for the rich to pay for continued support for the recession-hit economy and to bring down a record budget deficit.

With an election due within six months, Wednesday's pre-budget report may well be the last throw of the dice for Darling and Prime Minister Gordon Brown's Labour Party to narrow the opposition Conservatives' lead in opinion polls.

A windfall tax on banks is seen as a high possibility after the government bailed out the sector at the height of the global credit crisis.

Investors are likely to be cheered by news British consumer morale held steady in November as a fall in people's perception of the current situation was offset by greater confidence about the future, with the Nationwide Consumer Confidence Index posting a reading of 73, matching October's upwardly revised figure.

Meanwhile prices in Britain's shops rose in annual terms for the first time since July last month, growing 0.2 percent as food price rises accelerated and the fall in non-food costs eased, the British Retail Consortium said on Wednesday.

Investors will also have October trade figures to digest at 0930 GMT, with the global trade gap seen narrowing to 6.85 billion pounds ($11.2 billion) from 7.19 billion in September.The non-EU trade gap was seen at 3.60 billion pounds, down from3.78 billion pounds. Once the pre-budget report is out of the way, traders willhave little else to focus on in the afternoon, with only U.S. October wholesale inventories and weekly mortgage and refinancing indexes due for release.

Ex-dividend factors will take 0.31 point off the FTSE 100 on Wednesday, with 3i Group, Land Securities, and Vedanta Resources all losing their payout attractions.

* GLOBAL MARKETS-Caution on risk hurts Asia stocks, helps

* US STOCKS-Wall St ends down on recovery jitters

* Nikkei slips on yen, debt worry; Suzuki climbs

* FOREX-Euro falls to 1-mth low vs dlr after debt downgrades

* TREASURIES-Downgrades and low-rate view bolster bonds

* Oil recovers to above $73 on surprise inventory drop

* Gold off 3-week lows; dollar rise, credit woes weigh

* METALS-Shanghai copper seen down on credit worries, dollar

UK stocks to watch on Wednesday are:

STANDARD CHARTERED

The Asia-focused bank said, in a trading update, that any losses it suffers in Dubai are unlikely to be material and thatin the 11 months to the end of November it had delivered astrong performance with "record levels of income and operating profit before tax".

HSBC

The global is set to buy the retail and small and medium enterprises businesses of Royal Bank of Scotland in India, China and Malaysia, the Mint newspaper reported on Wednesday, citing an unnamed RBS official in India.

BHP BILLITON ,RIO TINTO

Europe's steel industry association, Eurofer reiterated on Tuesday its opposition to a planned iron ore joint venture between mining giants BHP Billiton and Rio Tinto and urged EU regulators to prohibit the deal.

FIRST QUANTUM

First Quantum Minerals will buy BHP Billiton's closed Ravensthorpe nickel mine for $340 million, paving the way to revive production that could add nearly 3 percent to world supply.

RETAILERS

Discount fashion retailer Primark enjoyed a 17 per cent increase in trading figures on the same day in December 2008 at its flagship store on Oxford Street, The Independent said.

STAGECOACH

The transport operator posts first-half results.

IG GROUP

The spread betting firm issues a trading update.

PZ CUSSONS

The household products firm issues a trading update.

PHOTO-ME INTERNATIONAL

The photo-booths operator reports first-half results.

MICRO FOCUS

The IT firm reports first-half results.

IMAGINATION TECHNOLOGIES

The chip maker delivers first-half results.