UK Stocks — Factors to watch on May 25

LONDON, May 25 (BestGrowthStock) – Britain’s FTSE 100 was seen falling 95 to 98
points at the open on Tuesday on fears that Europe’s sovereign debt crisis will
cause more turmoil in the financial sector, prompting sharp falls in the euro
and Asian equities.

Financial bookmakers saw the UK’s blue-chip index (.FTSE: ) falling as much as
1.9 percent after it inched 0.1 percent higher on Monday to close at 5,069.61.

Anxiety about Europe’s response to the Greek debt crisis and concern about
swelling debt in other euro zone economies have contributed to a 13 percent fall
in the FTSE 100 since mid-April.

Throwing the spotlight on the fragile state of the European financial sector
was news that Spain’s central bank on Saturday took over savings bank CajaSur
following the failure of its planned merger with another regional lender.
[ID:nLDE64L007]

Geopolitical risks are also feeding into market nervousness after news that
North Korean leader Kim Jong-il has ordered his military to be on a combat
footing, contributing to a 3.6 percent slide for Asian stocks outside Japan
(.MIAPJ0000PUS: ). [ID:nSEW002195]

Back on the domestic front, investors will watch UK GDP data second release
for the first quarter due for release at 0830 GMT. Analysts polled by Reuters
forecast a median rise of 0.3 percent for the quarter.

Britain’s new coalition government will set out its legislative agenda on
Tuesday, working with diminished resources because cutting a record budget
deficit is its priority.

The Conservative-Liberal Democrat government is expected to let teachers and
parents set up their own schools free of direct state control and also scrap
plans to force Britons to carry national identity cards in its first pieces of
legislation. [ID:nLDE64N14V]

* US STOCKS-Wall St sinks on euro-zone bank troubles [ID:nN24271811]

* Nikkei drops 3 pct as Europe woes, N.Korea hurt [ID:nTOE64O047]

* GLOBAL MARKETS-Shares,euro fall as debt fears [ID:nLDE64O01U]

* METALS-Copper down on renewed euro zone debt worries[ID:nTOE62P01J]

* PRECIOUS-Gold falls as dollar’s rise snaps rally [ID:nSGE64O02A]

* Euro slides on bank worries, Aussie vulnerable [ID:nTOE64O002]

* Oil drops towards $69 as risk aversion returns [ID:nSGE64O05E]

UK stocks to watch on Tuesday are:

BP (BP.L: )

The oil giant is preparing for a crucial attempt to seal a blown-out well
that has spewed oil into the Gulf of Mexico for five weeks. The U.S. government
piled pressure on BP on Monday to clean up the “massive environmental mess” and
a top official said fines would be imposed on the energy giant for the spreading
oil spill. [ID:nN2597511]

Shareholders have sued the board of BP for failing to monitor safety and
exposing the company to potentially enormous liability related to the Deepwater
spill disaster in the Gulf of Mexico, according to court documents.
[ID:nN24268953]

PRUDENTIAL (PRU.L: )

Prudential Plc (PRU.L: ) shares fell on their Asia debut on Tuesday, hit by a
global sell-off and concerns over shareholder support for the British insurer’s
planned purchase of AIA, the industry’s biggest acquisition. [ID:nSGE64O07E]

MARKS & SPENCER GROUP (MKS.L: )

The retailer releases its full-year results.

BSS GROUP (BTSM.L: )

The plumbing and building group reports full-year results.

DE LA RUE (DLAR.L: )

The bank-note printer reports its full-year results.

HOMESERVE (HSV.L: )

The home insurance group reports its full-year results.

TODAY’S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

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UK Stocks — Factors to watch on May 25