UK Stocks — Factors to watch on Nov 9

LONDON, Nov 9 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) index is seen opening
flat to slightly lower on Tuesday, consolidating as investors lock in profits
after solid gains last week, with concerns over euro zone sovereign debt lurking
in the background.

The UK blue chip index looks set to open unchanged to down 6 points, or 0.1
percent lower, according to financial bookmakers, after it closed down 25.39
points, or 0.4 percent, at 5,849.96 on Monday.

The index hit a 29-month closing high on Friday as investors cheered the
U.S. Federal Reserve’s commitment on Wednesday to extend quantitative easing.

Three top U.S. Federal Reserve officials on Monday voiced concerns about the
central bank’s latest efforts to boost the economy, with one warning the Fed’s
bond buying might need to be curbed to head-off inflation. [ID:nN08243349]

In terms of domestic economic news, British house prices fell last month at
their sharpest pace in a year-and-a-half as a lack of mortgage finance and an
uncertain economic outlook deterred potential buyers, a survey by the Royal
Institution of Chartered Surveyors indicated. [ID:nSLA8ME6HZ]

British retail sales picked up in October, driven mainly by higher prices
rather than nervous shoppers buying more goods, a survey by the British Retail
Consortium showed. [ID:nSLA8ME6I2]

Investors will also look at September trade balance figures, September
industrial production data, and September manufacturing output data, all due at
0930 GMT.

The euro (EUR=: ) has dropped 3 percent against the dollar from a 9-1/2 month
high set last week and against the yen (EURJPY=: ) has slipped to a one-week low.

Ireland is the latest country to rattle the single currency, with Irish
borrowing costs extending a month-long climb on worries about a political
impasse in Dublin ahead of a budget vote. The yield on Irish 10-year bonds hit 8
percent for the first time on Monday. [ID:nLDE6A722M]

A G20 leaders’ meeting this week in South Korea was seen as further cause
for investor caution.

“With growing criticism and uncertainty about the effectiveness of QE2 and
the G20 meeting later this week, traders are seen taking a breather from the
market and booking profits,” Jonathan Sudaria, a dealer at Capital Spreads,
wrote in a note.

“Also, the resurgence of European Sovereign debt worries could be a driver
of momentum today,” he said.

Wall Street retreated from a two-year high on Monday, weighed down by
financial stocks and a stronger dollar.

U.S. September wholesale inventories data is scheduled for release at 1500
GMT.

* GLOBAL MARKETS-Euro extends fall, gold at record pre G20 [ID:nSGE6A804G]

* Wall St retreats on lower bank shares, strong dollar [ID:nN08285565]

* Nikkei dips after rally; faces resistance near 9,750 [ID:nTOE6A802S]

* TREASURIES-Gain in Asia, long bonds outperform [ID:nTOE6A8027]

* FOREX-Euro undermined by debt woes, yen lifted [ID:nTOE6A801J]

* Gold hits new high on inflation worry, Europe debt [ID:nSGE6A8053]

* LME copper hits 27-mth peak; shifts to backwardation [ID:nSGE6A807G]

* Oil falls first day in seven on euro zone woes [ID:nSGE6A8065]

UK stocks to watch on Tuesday:

ROLLS-ROYCE (RR.L: )

Qantas Airways (QAN.AX: ) is reviewing the way it operates its A380 planes
after last week’s engine blowout, a source said on Tuesday, amid reports that it
worked its Rolls-Royce engines harder than other airlines.

XSTRATA (XTA.L: )

The Anglo-Swiss miner is looking for more iron ore acquisitions beyond its
current takeover bid for Australia’s Sphere Minerals (SPH.AX: ), Xstrata’s coal
and iron ore division chief Peter Freyberg said. [ID:nSGE6A8091]

BANKS

Tougher regulation in Western economies could trigger a shift in investment
banking away from Europe and towards Asia, Royal Bank of Scotland (RBS.L: )
chairman Philip Hampton said, according to the Times newspaper.

DE LA RUE (DLAR.L: )

The banknote publisher is set to cut dozens of jobs as it is forced to pulp
tonnes of high-quality paper for which it cannot find a buyer, the Times said.

PEARSON (PSON.L: )

The British information group plans to double its English language teaching
capacity in China over the next few years, opening 50 new schools in cities
including Nanjing, Suzhou and Dongguan. [ID:nLDE6A7237]

ASSOCIATED BRITISH FOODS (ABF.L: )

The food to retail group reports full-year results.

BARCLAYS (BARC.L: )

The bank issues a third-quarter trading update.

HAMMERSON (HMSO.L: )

The property investor issues a trading update.

INTERCONTINENTAL HOTELS GROUP (IHG.L: )

The hotelier reports third-quarter results.

LEGAL & GENERAL (LGEN.L: )

The insurer issues a third-quarter trading update.

MARKS & SPENCER GROUP (MKS.L: )

The retailer reports first-half results.

RANDGOLD RESOURCES (RRS.L: )

The gold miner reports third-quarter results.

VODAFONE GROUP (VOD.L: )

The mobile telecoms firm reports first-half results.

BABCOCK INTERNATIONAL (BAB.L: )

The defence services group posts first-half results.

CAPITAL & COUNTIES PROPERTIES (CAPCC.L: )

The developer issues a trading update.

DRAX GROUP (DRX.L: )

The power station operator issues a trading update.

JARDINE LLOYD THOMPSON GROUP (JLT.L: )

The insurance broker issues a trading update.

TODAY’S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Tricia Wright)

UK Stocks — Factors to watch on Nov 9