UK Stocks - Factors to watch on Dec 11

 

Britain's FTSE 100 index is seen opening 4 to 7 points higher on Friday, following on from gains overnight on Wall Street and in Asia as investors reacted to a raft of upbeat economic data.

According to financial bookmakers, the blue chip index is seen gaining as much as 0.1 percent after closing up 40.48 points, or 0.8 percent at 5,244.37 on Thursday.

U.S. stocks rose on Thursday as signs of improving trends in the jobs market and a decline in the U.S. October trade deficit reassured investors that the economy was on a steady growth path.

And, on Friday, a slew of Chinese data showing the world's third-largest economy is on a brisk recovery path gave Asian stocks a lift.

On the UK economic front, producer prices numbers for November are due at 0930 GMT.

Investors will also anxiously eye November's U.S. retail sales data, due at 1330 GMT, for indications that consumers, slammed by the worst U.S. recession since the 1930s, are starting to spend again and give the fragile economic recovery a much needed lift.

A Reuters survey of 76 economists forecast retail sales rose 0.7 percent last month after increasing 1.4 percent in October.

Also scheduled for release on Friday is the first reading of the University of Michigan confidence survey for December.

Britain and France joined forces at a European Union summit on Thursday todemand that bankers' bonuses be taxed heavily and Germany called for solidarity with Greece over a mounting debt problem.

* Asia stocks gain on China data, gold inches up

* Wall Street ends up after jobs, trade data

* Nikkei extends gains on China data, exporters rise

* Bad bond auction brings US debt woes back to fore

* Oil rises near $71; strong China data supports

* PRECIOUS-Gold rises above $1,130 as dollar steadies

* Copper snaps 6-day decline; China imports, output up

UK stocks to watch on Friday:

ASTRAZENECA

The drugmaker gives positive late-stage results from Faslodex 500 mg study.

RIO TINTO

The world No. 2 iron ore miner has named a new chief iron ore negotiator as talks get underway over next year's prices and volumes.

UNILEVER

To close manufacturing plant in City of Industry, California.

BANKS

Following an outcry from banks with large asset management subsidiaries, HM Revenue & Customs is set to revise the wording of tax proposals aimed at creating a 50 per cent 'supertax' on bank bonuses, reported the Financial Times.

All banks, including new entrants such as the banks run by Tesco, J Sainsbury and the Co-operative Group, will be affected by the 50 percent levy, said the newspaper.

RETAILERS

Richard Hyman, strategic retail adviser to Deloitte, has predicted that Christmas will not be a "disaster" for retailers, with consumer spending proving much better than most retailers had anticipated, thanks to such factors as lower interest rates, smaller energy bills and an end to food price increases, said the Financial Times.

TESCO

Tesco is entering the already saturated market for Apple iPhone as it begins selling the 3G and 3GS models of iPhone on Monday, said the Independent.

COFFEEHEAVEN INTERNATIONAL

Traders noted speculation of an imminent 25 pence a share cash bid for the coffee bar operator from Costa Coffee-owner Whitbread, The Daily Mail's Market Report said.

HMV GROUP

The music, books and games retailer posts first-half results.

CARILLION

The building and outsourcing group issues a trading update.

WHITE YOUNG GREEN

The construction consultancy holds its annual general meeting.

DRAGON OIL

The oil and gas explorer holds an extraordinary general meeting.

MJ GLEESON GROUP

The urban regeneration specialist holds its annual general meeting.

TGE MARINE

The cargo-handling systems designer holds its annual general meeting.