UK Stocks — Factors to watch on July 7

LONDON, July 7 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) index is seen falling
on Wednesday, retreating after sharp gains in the previous session, reflecting
overnight weakness in Asia after Wall Street closed firmer but off its highs as
investors remained concerned about global growth.

The UK blue chip index looks set to shed 51-52 points, or 1 percent,
according to financial bookmakers. The index closed up 141.47 points, or 2.9
percent at 4,965.00 on Tuesday, its highest closing level since June 28, and its
biggest one-day percentage rise since May 27.

Asian stocks fell on heightened fears about a slowdown in the global economy
after Friday’s report showing that U.S. employment shrank in June for the first
time this year.

U.S. stocks (Read more about the stock market today. ) rose on Tuesday after a five-session losing streak, but strong
buying interest evaporated in the afternoon as bearish sentiment reasserted
itself and investors used the morning’s gains as an opportunity to sell rather
than establish new long positions.

On Tuesday, the U.S. Institute for Supply Management’s reading on service
sector activity showed economic growth in June, but at its slowest pace since
February, fuelling worries over sluggish economic recovery.

No significant U.S. economic data is scheduled for release on Wednesday.

British shop price inflation eased for a second month running in June,
thanks to cheaper seasonal food and retailers offering football World Cup
discounts to lure in shoppers, a survey showed on Wednesday. [ID:nLDE6650TY]

The rate at which British recruiters filled permanent jobs fell for a third
month running in June, and the industry fears a sharper slowdown when public
spending cuts takes effect, a survey showed on Wednesday. [ID:nLDE6651D7]

Ex-dividend factors will take 0.49 points off the index on Wednesday, with
British Land (BLND.L: ), Burberry (BRBY.L: ) and Vedanta Resources (VED.L: ) all
losing their payout attractions.

* GLOBAL MARKETS-Asia stocks fall; euro nears 7-week high [ID:nSGE666013]

* US STOCKS-Wall St in modest recovery after sell-off [ID:nN06116436]

* Nikkei down 0.9 pct but remains above 7-mth low [ID:nTOE66602D]

* TREASURIES-Prices rise amid fear U.S. growth will slow [ID:nN06589359]

* FOREX-Euro dips from 7-wk high, pauses before resistance [ID:nTOE666039]

* PRECIOUS-Gold rebounds from 6-week low; physicals active [ID:nSGE66602V]

* METALS-Shanghai copper seen higher; LME eases [ID:nSGE66600N]

* Oil bounces off 1-month low on U.S. stock draw hopes [ID:nSGE666059]

UK stocks to watch on Wednesday:

PRUDENTIAL (PRU.L: )

Prudential Chief Executive Tidjane Thiam is expected to apologise directly
to shareholders when the insurer holds its annual general meeting on Monday,
days after it was humiliatingly forced to pull its $35.5 billion bid for AIG’s
Asian arm. [ID:nLDE65509O]

Also, City grandee Richard Lapthorne is being lined up by leading investors
to replace the insurer’s beleaguered chairman Harvey MacGrath, The Daily Mail
said.

SHIRE (SHP.L: )

The FDA has approved Daytrana (methylphenidate transdermal system) CII for
the treatment of ADHD in adolescents.

SAINSBURY (SBRY.L: )

The Daily Mail’s Market Report notes revived talk that the Qataris could
soon increase their shareholding in Sainsbury to 29.9 pct prior to launching a
renewed 9.32 billion pounds or 500 pence a share cash offer.

ROYAL BANK OF SCOTLAND (RBS.L: )

RBS plans to dispose of up to 3 billion pounds ($4.56 billion) of property
loans, the Financial Times reported on Wednesday, as it continues to whittle
down its non-core assets. [ID:nLDE665258]

BP (BP.L: )

Drilling of a relief well to halt the BP oil spill in the Gulf of Mexico is
a week ahead of schedule, the U.S. official overseeing the response to the
disaster said on Tuesday. [ID:nLDE6650FT]

RIO TINTO (RIO.L: ), XSTRATA (XTA.L: )

Rio Tinto and Xstrata have resurrected plans to spend billions of dollars on
projects in Australia after reaching an agreement with the government on a
so-called “super-tax” on miners’ profits, said the Daily Telegraph.

QINETIQ (QQ.L: )

The British defence firm will cut 400 jobs at its sites in Farnborough and
Malvern as part of a drive to reduce operating costs by 10 percent, said the
Financial Times.

MARKS & SPENCER GROUP (MKS.L: )

The company issues a first-quarter trading update.

Investors in Marks & Spencer have been urged to oppose the British
retailer’s remuneration report by a governance body, which considers its
executive pay to be “highly excessive”. [ID:nLDE6651ML]

ROBERT WALTERS (RWA.L: )

The recruitment firm issues a trading update.

BOOKER GROUP (BOK.L: )

The cash-and-carry wholesaler issues a trading update.

BIG YELLOW GROUP (BYG.L: )

The self-storage firm issues a trading update.

CAPE (CIU.L: )

The energy support services group issues a trading update.

CARILLION (CLLN.L: )

The building and support services group issues a trading update.

IDOX (IDOX.L: )

The software firm reports first-half results.

PHOTO-ME INTERNATIONAL (PHTM.L: )

The photo booth maker reports full-year results.

PAYPOINT (PAYP.L: )

The electronic-payments firm holds its annual general meeting.

AVEVA GROUP (AVV.L: )

The software firm holds its annual general meeting.

TODAY’S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Tricia Wright)

UK Stocks — Factors to watch on July 7