UK Stocks - Factors to watch on Oct 2

 

Britain's FTSE 100 was seen opening 29-31 points, or as much as 0.6 percent lower on Friday, down for a fourth consecutive session as weak U.S. data fueled fears about the recovery's strength.

The blue chip index slid 1.7 percent on Thursday to 5,047.81, its lowest close in over two weeks mirroring falls on Wall Street as data showed the U.S. manufacturing sector grew at a slower pace than expected in September.

Also sapping risk appetite, U.S. auto sales tumbled by 23 percent in September as showrooms emptied after government-funded boom from the cash for clunkers program ended.

This weak data also prompted falls in Asia on Friday with Japanese shares sliding 2.5 percent.

Investors will focus on U.S. non-farm payrolls at 1230 GMT for further evidence of recovery in the world's largest economy.

An report on Thursday showed initial claims for state unemployment insurance rose last week, overshadowing other data showing U.S. consumer data rose at its fastest level in nearly 8 years in August.

Economists polled by Reuters forecast a median decline of 180,000 jobs in September, a slightly smaller decrease than the 216,000 the previous month.

Ahead of that the market will watch UK house price data for September from Nationwide, with analysts forecasting a 0.7 percent increase on the month.

* Nikkei hits 2-mth low on economy worries, yen rise

* US STOCKS-Wall St has worst day in 3 months

* Dollar steady, caution prevails before US data

* TREASURIES-Rise in Asia as stocks fall

* GLOBAL MARKETS-Asia shares slump on U.S. data

* METALS-LME copper falls; data weighs

* PRECIOUS-Gold inches above $1,000, awaits U.S. data

* Oil dips towards $70 as dollar firms, Iran fears ease

UK stocks to watch on Friday are:

XSTRATA, ANGLO AMERICAN

Xstrata has been given a deadline to "put up or shut up" on its proposal to merge with rival miner Anglo American by the UK's takeover panel, the Financial Times reported.

THE ROYAL BANK OF SCOTLAND

The bank will announce the completion of its boardroom overhaul with the appointment of two non-executives Philip Scott and Penny Hughes, the Financial Times reported.

BANKS

The UK's Financial Services Authority aims to have a regulatory committee operating by the end of the year to vet the appointment of directors to Britain's banks, the Financial Times reported.

Returns on debtor-in-possession financing have come down to around 10-12 percent, the top restructuring and finance executive at Barclays', Barclays Capital Unit said on Thursday at the Reuters Restructuring Summit in New York.

HELPHIRE

The accident claim handler releases its full-year results.