UK Stocks-Factors to watch on Monday Sept 26
LONDON, Sept 26 |
LONDON, Sept 26 (Reuters) - Britain's FTSE 100 index is seen opening down 7-22 points, or as much as 0.4 percent on Monday, according to financial bookmakers, reversing Friday's late rally in tandem with falls by Asian equities, with commodity issues likely to be the main drag in London.
Commodity prices continued their slide on Monday, after being sold off across the board last week as a rising dollar increased the cost of dollar-denominated assets for holders of other currencies.
Oil CLc1 dropped further after falling to six-week lows on Friday, while copper prices neared 14-month lows in Shanghai trade as fears of renewed recession in the developed world raised worries of falling demand.
Even gold extended losses, after sliding a record $100 an ounce on Friday, as safe haven seekers abandoned the precious metal in favour of the dollar and U.S. Treasuries.
Asian shares fell on Monday as investors reacted cautiously to reports that European leaders were working on new ways to stop the fallout from the euro zone sovereign debt crisis exacting more damage on the world economy.
EU leaders, under pressure from tumbling markets, might agree on bolder steps to ring-fence heavily indebted Greece, Portugal and Ireland but investors expressed concern about a lack of detail about the proposals.
"If the rumours are to be believed then the move would finally give investors what they have been asking for, will likely give markets a short-term shot in the arm," James Hughes, Senior Market Analyst at Alpari UK, said.
"However, the news of this deal would be in contrast to comments from IMF chief Christine Lagarde who believes, like many, that this money is just not available," Hughes added.
The UK blue chip index ended up 25.20 points, or 0.5 percent on Friday at 5,066.81, after a volatile session having dipped as low as 4,928.14, bolstered by a strong rebound in banking stocks, with investors pinning hopes on more action from the European Central Bank to deal with the region's debt crisis.
The FTSE 100 index ended a turbulent week down 5.6 percent overall, wiping 81 billion pounds off its value.
U.S. blue chips notched up gains of 0.4 percent on Friday but still suffered their worst week since the depths of the financial crisis in 2008, stung by severe anxiety over Europe's spiraling debt crisis and a warning from the Federal Reserve about the U.S. economy.
The broader S&P 500 index added 0.6 percent holding above the August 8 low of 1,119, a key support level during the week.
No important British data will be released on Monday so investors will focus across the Atlantic on the Chicago Fed index for August, due at 1230 GMT, and August U.S. new home sales, due at 1400 GMT.
The main macroeconomic focus for the week, the last of September, will be final readings for U.S. and UK second-quarter GDP, due on Thursday and Friday respectively.
* GLOBAL MARKETS-Stocks, euro fall on caution
* Nikkei falls to 6-month low amid Greece worries
* Euro nears 8-mth low on doubts over EU crisis steps
* Wall Street stabilizes after disastrous week
* Brent crude rises above $104; euro zone debt eyed
* Copper extends losses, hits 14-month lows in Shanghai
* Spot gold falls 1 pct as recession fear prevails
UK stocks to watch on Monday are:
The British defence giant is set to announce up to 3,000 job losses as it struggles to secure orders for the Eurofighter Typhoon in the wake of cuts to defence budgets by partner nations, British media reported on Sunday.
Rio Tinto is considering spinning off part of its Australian aluminium assets as a planned carbon tax would raise costs and lower margins, a local newspaper reported Monday.
Also, the global mining giant said it will respond to any request from the Mongolian government to discuss its investment in the country's giant Oyu Tolgoi copper-gold deposit, but still expects the original 2009 agreement to be honoured.
Anglo American is being urged by shareholders to take control of diamond firm De Beers, in which it holds a 45 percent stake, by acquiring the 40 percent stake owned by the Oppenheimer family, The Observer said.
BP will make a decision "very soon" whether Maxim Barsky, the chief executive in waiting, will head its Russian joint venture TNK-BP , The Wall Street Journal said.
Also, the board of TNK-BP, Russia's third-largest oil producer, approved an additional $1.25 billion dividend payout to shareholders, a spokesman for the company said on Sunday. [ID@nS1E78O07O]
The product-testing specialist, is lining up David Reid, the outgoing chairman of Tesco , as its new chairman, the Financial Times reported on Monday.
The electricals retailer is thought to be planning to retain the Comet pension fund to ease a sale of the struggling business and has been in discussion with Hilco and OpCapita, The Independent on Sunday.
Steve Morgan, the founder and 30 percent shareholder of Redrow is drawing up plans to take the housebuilder private for more than 400 million pounds and has held talks with its second largest shareholder, Toscafund, which owns 11 percent and is understood to back the plan, the Mail on Sunday said.
CHARTER , MELROSE
'Top Charter investors' are threatening to block Colfax's bid unless it pays over 1,000 pence a share, with some shareholders 'furious' with the board for recommending the offer as they prefer Melrose's proposal, The Sunday Times said.
SPIRIT PUB CO.
Ian Dyson is expected to stand down as the pubs operator's chief executive by the end of this year, the Daily Express said on Monday.
Grosvenor, the British property company controlled by the Duke of Westminster, could start buying shares in listed property companies to help expand its fund management arm, the Sunday Telegraph newspaper said, quoting a Grosvenor executive.
The engineering and automotive consultancy reports full-year results.
The financial services firm unveils first-half results.
GRAPHITE ENTERPRISE TRUST
The investment firm posts first-half results.
ECO ANIMAL HEALTH GROUP
The animal drugs firm holds its annual general meeting.
The management software provider holds its annual general meeting.
TODAY'S UK PAPERS
> Financial Times
> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com (Reporting by Jon Hopkins; Editing by Mike Nesbit)
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