FTSE seen opening lower

LONDON (Reuters) - The leading share index .FTSE is seen opening around 34 points, or 0.9 percent lower on Friday, extending Thursday's hefty losses and tracking Wall Street's plunge overnight.

The FTSE 100 index ended 130.69 points, or 3.3 percent lower on Thursday at 3,874.99. The UK blue chip index has lost around 40 percent this year.

"European equity markets are set to take another pummelling at the open with Wall Street having tumbled ahead of last night's close," said Matt Buckland, a dealer at CMC Markets.

"Ailing U.S. car manufacturers are spearheading the decline with the S&P finishing at it's lowest level in 11 years whilst the fact oil is now below $50/barrel is also taking a toll on the commodity stocks, so arguably the only saving grace is that the cherry pickers may now come in and start buying up some keenly priced stock," added Buckland.

Asian shares were higher after a rise in U.S. stock futures and hopes the sell off in New York would prompt bargain hunting with the Nikkei 225 .N225 up 3 percent and Hong Kong's Hang Seng .SSEC gaining 6 percent.

UK stocks to watch on Friday are:

LEGAL & GENERAL (LGEN.L)

L&G has backed away from its threat to vote against Barclays' (BARC.L) move to raise 7 billion pounds in fresh capital, much of it from Middle Eastern investors, the Financial Times reported.

Also, plans to make banks hold greater capital reserves and limit the amount they can borrow have been outlined by the world's leading banking watchdog in an effort to prevent a repeat of the credit crisis, the Financial Times reported.