FTSE seen opening flat - Yahoo! Finance

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Friday July 4, 07:00 AM
Reuters

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FTSE seen opening flat

LONDON (Reuters (LSE: TRIL.L - news) ) - The FTSE 100 <.FTSE> index is seen opening flat on Friday, according to financial bookmakers, having closed up 50.3 points, or 0.9 percent, at 5,476.6 in the previous session.

The Dow Jones industrial average <.DJI> rose on Thursday, a day after the blue-chip average entered a bear market, on relief payrolls data was not as weak as some had feared and with another record oil price boosting energy shares.

The U.S. market will be closed on Friday for the Independence Day holiday.

"Rising oil prices -- crude is still sitting above $145/barrel -- and the fact thinner volumes could result in yet more volatility being seen should ensure there's something to occupy traders in the near term," said Paul Webb, chief dealer at CMC Markets.

"However, that $150 level on oil is looming and a move in this direction could always inject a degree of panic and in thin trading conditions the result of something like this could have the potential to be rather notable."

In the UK, an annual discretionary income study by Ernst & Young showed the average household is now 15 percent worse off than it was five years ago.

According to Moneysupermarket.com, more than four million households have resorted to personal loans or credit cards to cover mortgage or rent payments in the past year, the Times (1832.HK - news) said.

* Energy shares, tame jobs data lift Dow

* Nikkei (news) edges down, sentiment remains gloomy

* Asia stocks slip as oil hovers near record

* Oil pauses near record over $145, US holiday ahead

* Dollar keeps gains on U.S. payrolls, Trichet

* TREASURIES-Short maturity debt gains on weak jobs

* Gold bounces after NY fall, record oil helps

UK stocks to watch on Friday are:

BHP BILLITON (LSE: BLT.L - news) <BLT.L>

BHP Billiton has matched Rio Tinto (LSE: RIO.L - news) 's <RIO.L> near 100 percent price hike for 2009-2009 iron ore deliveries, Chinese industry officials said on Friday, ending protracted talks over contracts worth billions of dollars.

BRADFORD & BINGLEY (LSE: BB.L - news) <BB.L>

The mortgage lender plans to increase the size of its rights issue to 400 million pounds after U.S. private equity firm TPG Capital pulled out of a plan to buy a stake, the bank said.

BSKYB (LSE: BSY.L - news) <BSY.L>

BSkyB is considering making a bid of more than 2.5 billion euros for Digital Plus, the Spanish pay-television platform, which would mark its first foray outside the UK and Ireland since an ill-fated move into Germany in 2000, the Financial Times said.

BG GROUP (LSE: BG.L - news) <BG.L>

Australia's Origin Energy <ORG.AX> urged shareholders to reject a $13.1 billion (6.6 billion pound) bid from the gas producer, as speculation grew over whether BG would raise its offer.

GLAXOSMITHKLINE (LSE: GSK.L - news) <GSK.L>

Two rival flu drugs, Roche (Virt-X: ROG.VX - news) 's <ROG.VX> Tamiflu and GlaxoSmithKline's <GSK.L> Relenza, work equally well to fight the symptoms of influenza in children, Japanese researchers reported.

FRIENDS PROVIDENT (LSE: FP.L - news) <FP.L>

Swiss Life (Virt-X: SLHN.VX - news) <SLHN.VX> is no longer considering a bid for Lombard, the high-end insurance unit of Friends Provident, a source familiar with the matter said.

MITCHELLS & BUTLERS <MAB.L>

Property tycoon Robert Tchenguiz on Thursday moved against short-sellers in the pub group, converting a derivatives holding of almost 26 percent into shares in order to stop it being lent to those betting on price falls, the Financial Times said.

TAYLOR WIMPEY (LSE: TW.L - news) <TW.L>

The housebuilder intends to seek a waiver for a possible breach of covenants from holders of some 380 million pounds of outstanding private placement notes, the Financial Times said.

BARRATT DEVELOPMENTS (LSE: BDEV.L - news) <BDEV.L>

Barratt Developments told staff on Wednesday that it would make about 1,000 people redundant, taking job losses in the construction industry to nearly 2,300 in just two days, the Times reported.

SAINSBURY <SBRY.L>

The economic slowdown will not prompt consumers to turn their backs on quality food, Justin King, chief executive of the supermarket group said.

(Reporting by Dominic Lau)

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