UK Stocks — Factors to watch on Monday Dec 6

LONDON, Dec 6 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) index is seen opening
up 12-14 points, or 0.3 percent on Monday, according to financial
bookmakers, recovering some of the previous session’s falls in tandem with
modest gains overnight in Asia after Wall Street turned higher late on Friday.

The UK blue chip index closed down 22.24 points, or 0.4 percent on Friday at
5,745.32, with heavyweight banks and commodity issues retreating following
recent rallies after a below-forecast U.S. jobs report revived worries over the
strength of the world’s biggest economy.

But U.S. stocks (Read more about the stock market today. ) (.DJI: ) (.SPX: ) shrugged off an early negative reaction to the
jobs data to close out their best week in a month on Friday, helped by hopes for
bigger quantitative easing moves by the Federal Reserve.

Speaking on the ’60 minutes’ television programme at the weekend, Fed
chairman Ben Bernanke said the central bank could end up buying more than the
$600 billion in U.S. government bonds it has committed to purchase if the
economy failed to respond or unemployment stayed too high.

Asian equities excluding Japan (.MIAPJ0000PUS: ), edged higher on Monday,
responding positively to the U.S. moves but pausing slightly after reaching
three-week highs in the previous session.

The British Chambers of Commerce (BCC) on Sunday cut its expectations for UK
economic growth next year, although it raised its forecasts for the following

The BCC reduced its forecast for UK gross domestic product (GDP) growth in
2011 to 1.9 percent from a previous forecast of 2.2 percent and raised its
prediction for 2012 growth to 2.1 percent from 1.8 percent. [ID:nLDE6B4095]

No important British data will be released on Monday, but it will be a busy
week for numbers, with inflation, unemployment, and retail sales numbers all

U.S. economic indicators this week, however, will be fairly light, with only
the November employment index due on Monday.

The main focus will be on October U.S. trade numbers and the first December
reading for the Reuters/University of Michigan consumer sentiment index, both
due on Friday.

Investors will also keep an eye on Monday on a meeting of euro zone finance
ministers, who face pressure to boost the size of a 750 billion euro safety net
for debt-swamped members in order to prevent contagion in the single currency
bloc. [ID:nLDE6B40EJ]

Technical factors, however, remain bearish for the FTSE 100.

“Should 5,784 hold as the short-term top then look for the start of a
pull-back to 5,651 to 5,620. A break back into this area could qualify as a test
of the main bottom at 5,519,” said James A. Hyerczyk, analyst at Autochartist.

“It is in this retracement zone that the bullish traders will either decide
to step in to support the market or step away allowing the long-term weakness
which began in the middle of November to continue,” added Hyerczyk.

* GLOBAL MARKETS-Dlr wobbles on Fed, weak data; stocks pause [ID:nL3E6N50B9]

* Wall St ends best week in a month; more gains eyed [ID:nN03135026]

* Nikkei slips as yen recovers, but finds support [ID:nTOE6B501N]

* FOREX-Dollar pushes back, market weighs QEII vs euro debt [ID:nTOE6B501I]

* TREASURIES-Gain in Asia after data, Bernanke [ID:nTOE6B500Z]

* Oil holds at 2-yr highs on weak dlr, cold spell [ID:nL3E6N30Y1]

* PRECIOUS-Gold eases after near 2 pct rise; dollar helps [ID:nL3E6N602J]

* METALS-Shanghai, LME copper steady; LME control eyed [ID:nL3E6N6041]

UK stocks to watch on Monday are:


The global miner (RIO.L: ) has made a $3.5 billion bid approach for
Africa-focused Riversdale Mining (RIV.AX: ), a move likely to spark a bidding war
for the Australian firm, which has hard coking coal projects in Mozambique.
Riversdale also hinted it was talking to others. [ID:nL3E6N600F]


The British mobile telecoms operator is close to selling its 44 percent
stake in mobile phone operator SFR to France’s Vivendi (VIV.PA: ), paving the way
for Vodafone buy back 5 billion pounds ($7.9 billion) in its own shares in 2011,
The Observer said on Sunday.

The newspaper said Vodafone was also close to announcing an 800 million
pound deal involving the disposal of its stake in Polish phone group Polkomtel.


Private equity group CVC is “plotting an audacious bid” for the British pub
company, the Mail on Sunday said in an unsourced report. [ID:nLDE6B4053]


The British bank note printing group declined to comment on Sunday on a Sky
News report that it had rejected a takeover bid from French company Oberthur
Technologies. [ID:nWLA9925]


The British yellow-pages publisher is preparing an emergency review that
could see it sell its U.S. arm for 1 billion pounds ($1.58 billion), The Sunday
Times newspaper said, without citing sources. [ID:nLDE6B408N]


Activist fund Crystal Amber is targeting a boardroom seat at the struggling
British sportswear retailer in which it holds a significant stake.


The discount airline issues November traffic figures.


The business communications service provider posts full-year results.


The workforce management software firm reports first-half results.


The coal group holds its annual general meeting.

(Reporting by Jon Hopkins; Editing by Jon Loades-Carter)

UK Stocks — Factors to watch on Monday Dec 6