UK Stocks - Factors to watch on Dec 24

 

Britain's FTSE 100 index is seen opening 17-20 points higher, or up as much as 0.4 percent on Thursday, according to financial bookmakers,tracking overnight gains on Wall Street and in Asia ahead of the Christmas break.

The UK blue chip index closed 43.72 points, or 0.8 percent,firmer on Wednesday at 5,372.38, its highest closing level in more than five weeks having reached an intraday peak for the year of 5,396.96 earlier in the session.

The FTSE 100 has rallied 55 percent since hitting a floor in early March, and is up 21 percent for the year, on track for its best yearly gains since 1997.

Last year, the index lost more than 31 percent. No important domestic economic data is due for release on Thursday, and the U.S. data of interest will be released after the London market has closed, with November durable goods orders and the latest weekly jobless claims numbers due at 1330 GMT.

London equity markets close at 1230 GMT and reopen on Tuesday December 29.

* GLOBAL MARKETS-Asian shares rise, dollar rally stalled

* US STOCKS-Tech outshines market; home sales stifle Dow,S&P

* Nikkei hits 3-mth high on techs; JT, Kirin jump

* FOREX-Dollar near highs but rally stalls before holiday

* TREASURIES-Drift sideways before auctions next week

* Oil up above $77 on US crude stock drop, weak dlr

* PRECIOUS-Gold inches closer to $1,100 in pre-holiday mkt

* METALS-Copper extends gains; Shanghai at 15-month peak

UK stocks to watch:

ROYAL BANK OF SCOTLAND

RBS is closing in on a sale of its asset management arm in a deal said to be worth 30 billion pounds, with Aberdeen Asset Management believed to be the front runner to buy the business, the Daily Express said.

LLOYDS BANKING GROUP

The bank is rejigging its capital structure in a move that appears designed to reduce costs and potentially minimise tax liabilities, with its HBOS business to be only indirectly owned by Lloyds, the Dail Mail said.

BHP BILLION

Chinese and Japanese copper smelters remain locked in talksover copper treatment and refining charges with BHP Billiton after agreeing a 38 percent cut with Freeport-McMoRan Copper &Gold Inc.

BANKS

U.S. regulators and legislators are investigating whether Wall Street investment banks deliberately sold risky structured securities to clients, and then bet on the securities failing, the New York Times reported on Wednesday.

MOBILE TELECOMS

Consumer Focus and the Communications Consumer Panel have written a joint letter to EU competition commissioner Neelie Kroes calling for the investigation into the merger of T-Mobile and Orange to be conducted in the UK rather than by her office,The Guardian newspaper said.