UK Stocks - Factors to watch on Dec 30

 

Britain's FTSE 100 index is seen opening 9-12 points, or as much as 0.2 percent, lower on Wednesday, according to financial bookmakers, retreating after reaching levels on Tuesdaynot seen since before the collapse of Lehman Brothers in mid-September 2008.

The UK blue-chip index ended 35.20 points, or 0.7 percent, higher on Tuesday at 5,437.61, a 15-month closing peak and a fifth straight session of gains asthe year-end rally progresses.

The UK benchmark index has rallied about 57 percent since hitting a six-year trough in March and is up around 23 percent for the year, on track for itsbiggest yearly gain since 1997.

U.S. shares inched lower in a low-volume session on Tuesday, breaking a six-day string of gains as investors found little reason to push stocks higheras the year-end approaches, and Asian markets followed suit.

British Prime Minister Gordon Brown said on Wednesday his priority for 2010,an election year, is to secure economic recovery while cutting Britain's gapingbudget deficit in a "sensible and fair" way.

In excerpts from his New Year message, released by his office, Brown said his strategy was to "go for growth" in the economy while reducing the government deficit at a responsible pace.

Investors will not have much else fresh for direction on the last full-trading session of 2009, with little corporate news and no important UK economic indicators scheduled for release on Wednesday.

Across the Atlantic, December Chicago PMI data will be of interest at 1445GMT, with a reading of 55.0 expected, down from 56.1 in November.

Ahead of that, investors will also have an eye on the latest U.S. mortgage and refinancing indexes.

Ex-dividend factors will clip 0.22 points off the FTSE 100 index on Wednesday, with Alliance Trust and Experian Group both losing their payout attractions.

* US STOCKS-Market slips in low volume trade; data mixed

* GLOBAL MARKETS-Asian shares wilt before year-end, dllr up

* Nikkei books 19 pct gain in 2009 as yen, economy help

* FOREX-Dollar gains on yen, rate path seen set to diverge

* TREASURIES-Sit tight in Asia ahead of 7-year auction

* Oil steady as crude stockbuild offsets fuel drop

* PRECIOUS-Gold steadies with eyes on dollar; ETF rises

* METALS-LME copper firm, bull fever will burn into 2010

UK stocks to watch on Wednesday are:

RIO TINTO

Rio Tinto mined more than 50 million tonnes of iron ore, or a quarter of its total output this year, from a single mine in Australia for the first time as demand for the raw material recovered.

INTERTEK

The testing equipment group Intertek is looking to acquire not-for-profitenterprises that could include parts of the British Standards Institution, withits chief executive Wolfhart Hauser questioning the need for such organisationsto be run by charities, the state or other foundations, the Financial Timessaid.

AB FOODS

AB Foods-owned Primark is planning to occupy a massive store in the flagship shopping centre of the 2012 Olympics in east London, The Independent said.

DANIEL STEWART SECURITIES

The stockbroker said after the close on Tuesday that Middle East investment bank Prime Group will no longer take an equity stake in it as originallyplanned.

HIGHTEX

The Aim-quoted roofing group, has collected orders for the next couple ofyears worth more than 40.5 million pounds, with the firm's recovery havingstarted in August when it announced it would supply the roof for a new nationalstadium in Warsaw, the Financial Times said.

STYLES & WOOD

According to the fit-out specialist's chief executive, Ivan McKeever, overthe next six to 12 months retailers will continue to constrain expenditure onsprucing up their stores, the Financial Times said.

ACCIDENT EXCHANGE GROUP

The vehicle replacement specialist posts first-half results.

REDSTONE

The communications solutions group holds an extraordinary general meeting.