UK Stocks - Factors to watch on Dec 17

 

Britain's FTSE 100 index is seen opening down 18-25 points, or as much as 0.5 percent on Thursday, according to financial bookmakers, giving back some of Wednesday's gains afterdull showings on Wall Street and in Asia as investors digest comments from theU.S. Federal Reserve.

The UK blue chip index closed 34.49 points, or 0.7 percent higher on Wednesday at 5,320.26 lifted by strength in commodity, and banking issues.

U.S stocks finished flat to slightly higher on Wednesday after the Federal Reserve, keeping interest rates unchanged, reiterated its intention to keep rates low for the foreseeable future to ensure a sustainable economic recovery.

Wall Street, however, trimmed gains after the central bank's policy-making committee also reminded markets it will let most of the special liquidity facilities, which have helped bolster the U.S. banking system after last year's credit crisis, expire by early next year.

On the UK economics front, November retail sales data will be released at 0930 GMT, with a 0.4 percent month-on-month rise forecast, the same as in October, while the annualised increase is at 3.5 percent, up from 3.4 percent in the previous month.

Adding to the picture on the UK high street, the CBI distributive trades survey will be released at 1100 GMT.

Across the Atlantic, the latest U.S. weekly jobless claims will attract attention at 1330 GMT, with December's Philly Fed index and November leading indicators both due for release at 1500 GMT.

* GLOBAL MARKETS-Dollar rises, Asian shares steady after Fed

* Wall St ends flat to up a bit after Fed's statement

* Tokyo's Nikkei share average closes down 0.13 pct

* FOREX-Dollar hits 3-mth high vs euro on short-covering

* TREASURIES-Bond prices little changed after Fed statement

* Oil above $72 on surprise fall in US inventories

* PRECIOUS-Gold inches down as strong dollar weighs

* METALS-Shanghai copper up 1 pct, Fed decision supports

UK stocks to watch on Thursday are:

Deutsche Bank has emerged as a key bidder for commodities trading company RBS Sempra, the Financial Times reported on Thursday. Part-nationalised RBS said in November it was selling its 51 percent stake in the firm, which it jointly owns with Sempra Energy

BARCLAYS

Ohio's attorney general on Wednesday filed a lawsuit against the mortgage servicing unit of Barclays Capital that expands an attack on mortgage companies that he says are failing the state's troubled homeowners.

BANKS

National Australia Bank Ltd has received approaches over its Clydesdale and Yorkshire banking units in the UK amid consolidation in that country's banking industry.

RIO TINTO

Rio Tinto is to lose two of its most senior non-executive directors next year, the Times newspaper reported.

Also, the world No.2 iron ore miner will make its first sale of iron ore from its mines in Australia to India, a company spokesman said on Thursday.

BHP BILLITON, RIO TINTO

Every country should unite in opposition to a "monopolistic" production joint venture between the Australian mining giants, China's steel industry association said on Thursday.

BRITISH AIRWAYS

The airline's cabin crew who voted to strike in a dispute over job losses and changes to working practices have questioned the tactics of their union leaders, The Independent newspaper reported.

CARE UK

Private-equity investor Bridgepoint Capital has upped its offer for Care UK,valuing the health and social care provider at between 275 million and 300 million pounds ($491 million), the Financial Times reported on Thursday.

TRINITY MIRROR

Guardian Media Group has discussed selling its GMG Regional Media division,which includes the Manchester Evening News, to rival Trinity Mirror, the Daily Telegraph said.

SAVILLS

Retailer Asda is to review its relationship with Savills after the estate agent's director of retail planning, Jeremy Hinds, criticised Competition Commission proposals to introduce a competition test for proposed supermarket sites, proposals which are supported by Asda, the Daily Telegraph said.

TRAVEL

Flyglobespan, the largest airline in Scotland, has collapsed into administration and all of its scheduled flights from Glasgow, Edinburgh and Aberdeen - as well as transatlantic flights from other UK hubs - have been cancelled, the Financial Times said.

MOBILE TELECOMS

Deutsche Telekom and France Telecom are shunning regulators in London and pressing Brussels to scrutinise the proposed merger of their UK mobile phone businesses, the Financial Times said.