UK Stocks-Factors to watch on Tuesday Feb 14

Tue Feb 14, 2012 7:00am GMT

LONDON Feb 14 (Reuters) - Britain's FTSE 100 index is seen opening down 6-8 points, or 0.1 percent on Tuesday, according to financial bookmakers, after debt rating agency Moody's warned it could downgrade top-rated sovereigns including Britain, reminding investors Europe is still deeply mired in a debt crisis despite a Greek deal.

Moving less aggressively than rival agency Standard & Poor's last month, but putting the United Kingdom's rating in jeopardy for the first time, Moody's said it was worried about Europe's ability to undertake the kind of reforms needed to address the crisis and the amount of funds available to fight it.

"Whilst most of the downgrades were aimed at countries that have been on a downward slide with the other agencies, concerns are likely to be raised that the Euro Zone crisis has reached the UK's shores as its AAA rating is threatened with a "negative outlook"," said Jonathan Sudaria, a dealer at Capital Spreads.

The Moody's news weighed on already fragile market sentiment as investors worried about Athens' ability to pursue harsh reforms in exchange for crucial aid, as relief over the passage of an austerity bill faded as intensifying violence across the country underscored the tough challenges ahead in Greece.

The UK blue chip index closed up 53.31 points, or 0.9 percent on Monday at 5,905.70, led by gains in risk-sensitive commodity and financial issues on initial relief that the Greek Parliament had passed the austerity measures.

U.S. blue chips closed 0.6 percent higher on Monday, but Asian stocks were lower on Tuesday, unsettled by the Moody's warning, with MSCI's broadest index of Asia Pacific shares outside Japan shed off 0.6 percent.

Japan's Nikkei, on the other hand, turned positive, up 0.6 percent after the Bank of Japan surprised markets by loosening monetary policy further, boosting its asset buying and lending scheme to add more liquidity as it bowed to political pressure for bolder action to support the economy.

On the domestic macro front, British house prices continued to fall in the three months to January, but surveyors became much less downbeat about prices for the coming months, a Royal Institution of Chartered Surveyors' survey showed on Tuesday.

The main macro focus will be on the latest British inflation numbers, due at 0930 GMT, with UK CPI seen down 0.5 percent in January, after a 0.4 percent advance in December, giving a year-on-year rise of 3.6 percent, down from 4.2 percent.

Across the Atlantic, U.S. January retail sales numbers will be released at 1330 GMT, with a 0.7 percent month-on-month rise predicted, after a 0.1 percent gain in December.

January U.S. import and export prices will also be released at 1330 GMT, with December U.S. business inventories due at 1500 GMT.

* Markets dip as Moody's takes shine off Greek relief

* Nikkei rises after BOJ to above 200-day average

* Greek vote lifts Wall St near 7-mo highs

* Yen falls as BOJ expands asset buying scheme

* TREASURIES-Prices end near flat in choppy trading

* Copper steady; caution reigns over Greece deal

* Gold dips with euro on Greece jitters

* Brent slips towards $117 on euro zone concern

UK stocks to watch on Tuesday are:

BP

A U.S. federal judge dismissed a large part of a nationwide lawsuit accusing BP and top executives of fraud for misleading shareholders before and after the 2010 Gulf of Mexico oil spill about the oil company's ability to respond to an accident.

BHP BILLITON, RIO TINTO

BHP Billiton and Rio Tinto have raised their bets on global copper demand, approving plans for a $4.5 billion expansion of the massive Escondida mine in Chile, while BHP plans to reopen a U.S. copper mine idled three years ago.

STANDARD CHARTERED

An executive at Standard Chartered is facing a possible investigation by the Financial Services Authority after failing to disclose a 2 million pound ($3.16 million) share deal to the bank for more than three weeks, The Times said.

INTERCONTINENTAL HOTELS GROUP

The hotels operator reports full-year results.

SABMILLER

The brewer holds an investors meeting.

PENNON GROUP

The multi-utility issues a trading update.

CARPETRIGHT

Carpetright shares rose on Monday on rumours that Lord Harris, who owns 18.8 percent of the equity in Britain's biggest floor covering retailer, is ready to take the firm private at 469 million pounds or 700 pence a share, according the Daily Mail market report.

BUMI

Top directors at coal miner Bumi will hold crisis talks in Jakarta on Tuesday, hoping to broker a boardroom deal barely a week after Indonesian shareholders said they planned to oust co-founder Nat Rothschild and others.

YELL GROUP

The directories group posts third-quarter results.

BRAMMER

The engineer reports full-year results.

HARGREAVES SERVICES

The coal firm unveils first-half results.

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 Hans-Juergen Peters)

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