UK Stocks - Factors to watch on Oct 22

 

Britain's FTSE 100 index is seen opening 58-66 points, or as much as 1.3 percent lower on Thursday, according to financial bookmakers, tracking a late reversal overnight on Wall Street and falls in Asia as the earnings roller-coaster ride continued across the Atlantic.

The British blue-chip index closed 14.45 points, or 0.3 percent higher on Wednesday at 5,257.85 having fallen as low as 5,174.48 earlier in the day, recovering late on as Wall Street posted early gains.

U.S. stocks, however, ended lower knocked by a late sell-off in financial issues, after an influential bank analyst recommended selling Wells Fargo.

After-hours U.S. earnings news also disappointed, with online auctioneer EBAY forecasting fourth-quarter results at the low end of expectations when posting in-line third-quarter numbers.

Asian shares fell on Thursday also impacted by disappointment that Chinese growth data, though robust, offered few surprises.

News that China's economy surged 8.9 percent in the third quarter, andretail sales and other indicators were robust in September, reinforced optimism Asia was on a sustainable recovery path. But the outcome was widely expected, giving investors little to trade on. The main domestic macro focus will be on September British retail sales numbers, with a 0.5 percent rise expected on the month, after a flat reading in August, giving a year-on-year increase of 2.8 percent, up from 2.1 percent inthe previous month.

Across the Atlantic, September U.S. leading indicators and the latest initial weekly jobless numbers will be eyed later in the session.

* GLOBAL MARKETS-Asia shares slip, China data fails to help

* US STOCKS-Wall St see late sell-off, financials fall

* Nikkei slides broadly, JAL rising streak snapped

* FOREX-Dollar up as China data offers no upside surprise

* TREASURIES-Prices fall, worry monetary stimulus will wane

* Oil falls 0.5 pct; around $81/bbl as dollar gains

* Gold flat near $1,060/oz, weaker dollar supports

* METALS-Shanghai copper hits 2-month high on LME gains

British stocks to watch on Thursday are:

ANGLO AMERICAN

The global miner issues a Q3 output report.

The platnum miner posts a Q4 output report.

BHP BILLITON, RIO TINTO

A proposed iron-ore joint venture between BHP Billiton Ltd and rival Rio Tinto Ltd was on track, BHP's outgoing Chairman Don Argus told reporters after a business lunch on Thursday.

AVIVA

A large restructuring effort is to follow a lengthy review of Aviva's 12 businesses on the European mainland by Aviva Europe's chief executive, Andrea Moneta, the Financial Times reported.

LLOYDS BANKING GROUP

The bank s planning to launch a rights issue and refinancing next week, provided the bank can persuade regulators and the government to agree to a dealbefore the weekend, the Financial Times said.

BAE SYSTEMS

Oshkosh Corp's winning bid for a potential $3.5 billion U.S. Armymedium-sized truck contract was about 10 percent lower than rival BAE Systems' "very aggressive" bid, BAE said Wednesday, explaining a third formal challengeto the award they filed on Friday.

NATIONAL EXPRESS

The transport group is expected to reveal disappointing figures for its third-quarter trading on Thursday, as the company faces a takeover bid from its contemporary Stagecoach, the Daily Telegraph said.

PETROFAC

The oil services company issues a trading update.

DEBENHAMS

The department stores group posts full-year results.

THORNTONS

The chocolate retailer holds its annual general meeting