UK Stocks - Factors to watch on Dec 18

Britain's FTSE 100 index is seen opening 3 to 6 points higher on Friday, steadying after the previous session's sharp falls, with energy stocks and miners likely to lend support as commodity prices rise.

According to financial bookmakers, the blue chip index is set to gain as much as 0.1 percent, having closed down 102.65 points, or 1.9 percent at 5,217.61 on Thursday.

In terms of domestic economics news, investors will be eyeing public sector finances data for November, scheduled for release at 0930 GMT.

Britain's financial sector looks in much better shape than it did six months ago, the Bank of England said on Friday as it urged banks to take advantage of current funding conditions to shore up their balance sheets.

In its twice-yearly Financial Stability Report, the BoE said banks had benefited from a remarkable rise in asset prices over the past nine months and were finding it easier to raise capital.

British consumer confidence fell in December for a second consecutive month,the first time since July 2008 that confidence fell two months in a row, a survey by GfK NOP for the European Commission showed on Friday.

Investors will be wary of 'triple witching' in the market on Friday, when the contracts for stock index futures, index options and equity options all expire at the same time.

* GLOBAL MARKETS-Euro rebounds; Asia stocks slip on earnings

* Wall St sinks as dollar jumps, FedEx loses altitude

* Nikkei slips 1 pct; resource shares, banks fall

* FOREX-Swissie off highs but dollar slips in bumpy market

* TREASURIES-Steady in Asia; eyes on Greece and stocks

* Oil above $73 on economic data, colder U.S. weather

* PRECIOUS-Gold firms as dollar weakens vs euro

* METALS-LME copper regains ground as dollar slips

UK stocks to watch on Friday:

BAE SYSTEMS

The company has been awarded a $59 million contract from the U.S. army for the production of iraqi light armoured vehicles.

LLOYDS BANKING GROUP

The disposals Lloyds has agreed to as compensation for taking state aid were a "very fair deal" but it has no plans to sell the assets off soon, the banking group's chief executive told the Financial Times.

BARCLAYS

Barclays is to begin lending money provided by the European Investment Bank(EIB) to small businesses, said the Daily Telegraph. It will lend the money to companies with fewer than 250 employees at 2.5 percent less than its usual rate,given in the form of cash up-front, said the newspaper.

INDEPENDENT NEWS & MEDIA

Russian billionaire Alexander Lebedev is in advanced talks to buy British national newspapers The Independent and The Independent on Sunday, the Financial Times reported on Friday.

MOUCHEL, VT GROUP

Mouchel's defence against VT Group's 380 million pound takeover approach has been boosted by its largest shareholder M&G Investment Management, which has come out in support of the target company's board, said the Financial Times.

CARNIVAL

The cruise ships operator reports full-year results.

AGGREKO

The temporary power provider issues a trading update.

ALTONA ENERGY

The energy company holds its annual general meeting.

AXIS-SHIELD

The medical testing specialist issues a trading update.

KELLER GROUP

The ground engineering firm issues a trading update.

SPORTINGBET

The online gaming company holds its annual general meeting.

VICTORIA OIL & GAS

The oil and gas explorer holds its annual general meeting.