UK Stocks - Factors to watch on Jan 19

 

Britain's FTSE 100 is seen falling 6-11 points at open on Tuesday, mirroring slight weakness in Asia, with Wall Street closed, as investors remain cautious ahead of key earnings from the U.S., while Cadbury will be in focus as a takeover decision looms.

Financial bookmakers see the blue chip index falling as much as 0.2 percent after it gained 0.7 percent on Monday to close at 5,494.39, supported by stronger miners.

Investors will likely be reluctant to take big positions ahead of key earnings data from the U.S. this week. Some 57 S&P 500 companies report this week including Citigroup, on Tuesday.

Domestically Cadbury will be the main event after sources familiar with the matter said the British confectioner is close to sealing a friendly deal with Kraft to create the world's largest confectionery group for up to 11.7 billion pounds ($19 billion).

Investors will watch UK inflation data released at 0930 GMT for more clues onthe outlook for the UK economy and prospects for monetary policy.

British consumer price inflation is expected to have shot up in December toa nine month high due to statistical effects from the cut in value added tax the previous year, but analysts reckon the the acceleration will be temporary.

Miners are likely to be firmer again as base metals grind higher and palladium and platinum hit multi-month highs.

* Asian shares ease, dollar dip boosts commods

* Nikkei falls 0.8 pct as yen weighs; earnings eyed

* Oil rebounds from $78 on China growth forecasts

* Copper up 1 pct on strong China imports outlook

* Euro hits 4-month low vs pound, Aussie retreats

* Palladium, platinum at multimonth highs; gold eyes dlr

UK stocks to watch on Tuesday are:

STANDARD CHARTERED

The bank's China banking unit has won regulatory approval to act as a market maker in China's interbank bond market, it said on Tuesday.

BP

Chinese energy group Sinopec is in talks with BP over potentially collaborating in the exploration and development of shale gas in China, the Financial Times reported.

VODAFONE

The Qatari unit of mobile operator Vodafone said it made a nine-month operating loss of 497 million riyals ($137 million) due to increased operational costs.

BURBERRY

The fashion group releases its third quarter trading update.

LAND SECURITIES

The property company releases its third quarter trading update.

CARPHONE WAREHOUSE

The company releases its third quarter trading update.

IG GROUP

The company releases a first half update.