UK Stocks — Factors to watch on Wednesday Dec 15

LONDON, Dec 15 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) is seen falling 9 to
16 points on Wednesday, as a cautious statement from the U.S. Federal Reserve on
the economy curbed risk appetite, while a stronger dollar hit commodity prices
which will pressure energy stocks and miners.

The FTSE 100 (.FTSE: ) is seen falling as much as 0.3 percent by financial
bookmakers after it gained 0.5 percent the previous session to close at
5,891.21.

Also likely to prompt caution on equities, rating agency Moody’s Investor
Service on Wednesday put Spain’s Aa1 sovereign credit rating on review for a
possible downgrade, citing concerns over the country’s mounting debt and its
funding needs in 2011.

Domestically, investors will watch the CBI distributive trades data for
December released at 1100 GMT for more clues on the state of the British
economy. A figure of 35.0 is forecast, down from 43 the previous month.

U.S. equities cut gains to end mostly flat after a late-day sell-off after
the Federal Reserve said in a policy statement that economic recovery was too
slow to bring down unemployment and reaffirmed its commitment to buy $600
million in government bonds.

The dollar (.DXY: ) rose against other major currencies, supported by strong
U.S. retail sales which put pressure on crude (CLc1: ) and metal prices.

United Utilities (UU.L: ) is going ex-dividend, which will take 0.26 points
off the index.

* Tokyo’s Nikkei share average closes down 0.07 pct [ID:nECB001109]

* US STOCKS-Markets close flat; Fed sparks late-day sell-off [ID:nN14168566]

* TREASURIES-Yields hit high after firm retail sales [ID:nTOE66S064]

* PRECIOUS-Gold moves little ahead of holidays, dollar weighs[ID:nL3E6NF02W]

* METALS-LME copper eases after early flirt with record high [ID:nL3E6NF02F]

* Oil prices ease after U.S. Fed dampens fast recovery hopes [ID:nL3E6NF09K]

* Dollar rebounds after data gives US yields a boost [ID:nTOE6BE02U]

* GLOBAL MKTS-Treasury yields up; Moody’s Spain warning hits euro

[ID:nL3E6NF03Q]

Stocks to watch on Wednesday include:

ROYAL BANK OF SCOTLAND (RBS.L: )

DBS GROUP (DBSM.SI: ) Southeast Asia’s biggest lender, is taking over Royal
Bank of Scotland’s retail and commercial businesses in three Chinese cities,
expanding its client-base in the world’s second-biggest economy. [ID:nDBS]

Separately, Britain’s financial regulator will seek permission from Royal
Bank of Scotland (RBS.L: ) to release the findings of a probe into the bank’s
public bailout in 2008, the Financial Times said on Wednesday. [ID:nLDE6BE004]

GLAXOSMITHKLINE (GSK.L: )

Herceptin and Tykerb — two rival breast cancer drugs from Roche (ROG.VX: )
and GlaxoSmithKline (GSK.L: ) — are not worth using in combination with aromatase
inhibitors, Britain’s health costs watchdog said on Wednesday. [ID:nLDE6BD12A]

RIO TINTO (RIO.L: )

The miner said plans to spend more than $1 billion on two of its Canadian
aluminium smelters, aiming to boost efficiency, cut costs and deliver on
commitments made when it acquired Canada’s Alcan. [ID:nN14271455]

BRITISH AIRWAYS (BAY.L: )

The trade union representing cabin crew at British Airways said it would
ballot members next week over fresh strike action in a dispute that has so far
cost the airline 150 million pounds ($238 million). [ID:nLDE6BD2AL]

TESCO (TSCO.L: )

Europe’s largest retailer Carrefour (CARR.PA: ) and its largest British peer
Tesco are among four bidders for the Zabka retail chain, two sources told
Reuters on Tuesday. [ID:nLDE6BD2AH]

SUPERGROUP (SGP.L: )

The clothing company releases first half results.

SENIOR PLC (SNR.L: )

The manufacturer releases a trading update.

TODAY’S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]
(Reporting by Simon Falush; Editing by Will Waterman)

UK Stocks — Factors to watch on Wednesday Dec 15