UK Stocks — Factors to watch on Tuesday Dec 7

LONDON, Dec 7 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) index is seen opening
up 12-17 points, or as much as 0.3 percent on Tuesday, according to financial
bookmakers, tracking similar modest gains in Asia as investors applauded U.S.
President Barack Obama’s compromise deal to extend all Bush-era tax cuts.

However, lingering concerns over the euro zone debt crisis, and worries of a
possible Chinese rate hike could help limit the gains.

China is likely to raise interest rates in the coming days in a
demonstration of the government’s resolve to tame inflation, an official
newspaper said on Tuesday. [ID:nTOE6B602F]

The UK blue chip index closed 24.96 points, or 0.4 percent higher on Monday
at 5,770.28, its highest closing level since Nov 15 buoyed by strength in energy
issues after crude (CLc1: ) reached a two-year peak. However China rate hike
worries pulled the oil price lower overnight.

U.S. stocks (Read more about the stock market today. ) ended mixed on Monday, but futures moved higher after news late
on of a “framework” agreement between President Obama and Republicans that would
renew tax cuts for two years not just for the middle class but also for
wealthier Americans, as Republicans wanted. [ID:nN06211347]

Meanwhile, British retail sales growth slowed in November, as consumers
proved reluctant to splash out on expensive items at a time of public spending
cuts and higher taxes, a survey showed on Tuesday.

The British Retail Consortium said sales values were 0.7 percent higher
than a year ago on a like-for-like basis. Total sales, which include new
floorspace, were 2.8 percent higher. [ID:nSLA6NE6K6]

Elsewhere on the macroeconomic front, British October industrial and
manufacturing output numbers will be released at 0930 GMT.

U.S. October consumer confidence and ISM manufacturing and non-manufacturing
semi-annual economic forecasts will be unveiled at 1500 GMT.

Euro zone debt worries will remain a focus. After a five-hour meeting, the
bloc’s finance ministers said late on Monday they would be taking no new
measures to tackle the contagion, saying the existing emergency fund was
sufficiently big and that the proposal for euro zone bonds had not even been
broached. [ID:nLDE6B525H]

Investors were also braced for Ireland’s budget vote. Prime Minister Brian
Cowen is expected to get his fiscal plan through parliament and avert the risk
of a snap election. [ID:nLDE6B51VW] Last month, the debt-ridden country accepted
an EU/IMF 85 billion euro bailout package.

* GLOBAL MARKETS-Yen up vs dollar, drags Nikkei lower [ID:nL3E6N705Y]

* U.S. stocks (Read more about the stock market today. ) close flat; futures turn higher on tax deal [ID:nN06241921]

* Nikkei falls on yen, China rate rise report [ID:nTOE6B602Q]

* FOREX-Euro wins reprieve, dollar hits 3-week low vs yen [ID:nTOE6B601I]

* Oil slips from 26-mth high on China rate increase report [ID:nL3E6N7088]

* METALS-Copper extends gains; ignores China rate threat [ID:nL3E6N701I]

* Gold holds near record, silver matches 30-year peak [ID:nL3E6N701E]

UK stocks to watch on Monday are:


The retailer issues a third-quarter trading update.


The plumbing supplies firm issues a trading update.

BP (BP.L: )

The oil major has approached several UK-focused energy companies about a
potential sell-off of North Sea assets worth around $1 billion, The Daily
Telegraph said on Tuesday. [ID:nN06245100].


The global bank continued to act for funds that fed money into Bernard
Madoff’s Ponzi scheme despite repeated warnings from the bank’s own executives
and outside auditors about the “baffling” and potentially fraudulent structure
of the fund, according to a U.S. lawsuit launched against the global bank, The
Financial Times said.


Workers at the world’s No.3 copper mine, Chile’s Collahuasi – owned by
global miners Xstrata and Anglo American — returned to work on Tuesday after
accepting a wage deal to end a 32-day strike, the longest-ever at a major
private mine in the top producing country. [ID:nN06218228]


Junior stock market AIM is poised to launch an investigation into
potentially misleading comments made last week by the Falkland Island explorer,
the Daily Mail reported.


The housebuilder issues a trading update.


The software group posts full-year results.


The care homes operator reports full-year results.


The vehicle hire firm deelivers first-half results.


The specialty chemicals group unveils full-year results.


The telecoms firm posts first-half results.


The investment firm issues a trading update.


The TV production and distribution group holds its annual general meeting.

(Reporting by Jon Hopkins; Editing by Louise Heavens)

UK Stocks — Factors to watch on Tuesday Dec 7