Financial bookmakers expected the blue chip index to gain as much as 0.7 percent on opening, after it ended down 0.3 percent at 5,251.41 on Friday, the lowest close since Nov 10. The index is still up 52 percent from a March low.

In the absence of any UK data on Monday, investors' attention will be drawn across the Atlantic, with U.S. existing home sales data for October scheduled for release.

According to a Reuters poll of 29 economists, sales of previously owned homes are expected to climb to a seasonally adjusted annual rate of 5.70 million, the fastest pace since 5.73 million units were sold in July 2007 and up from 5.57 million units in September.

Later in the week, the focus will fall on the second estimate for UK GDP during the third-quarter period of 2009 -- due on Wednesday.

The initial estimate, released in October, showed Britain's economy contracted unexpectedly in the third quarter of this year, by 0.4 percent quarter-on-quarter, squashing hopes of an end to the recession and instead making the current recession the longest on record.

The leader of the opposition David Cameron and a senior government figure are expected to outline their economic plans at the CBI conference in London on Monday.

Pascal Lamy, director general of the World Trade Organisation, told the Sunday Telegraph that the British government could face trade sanctions if it is found guilty of protectionism as a result of the bank bail out.

Stocks to watch on Monday:

CADBURY

U.S. chocolate maker Hershey is considering launching a bid of at least $17 billion (10.3 billion pounds) for the British chocolatier as it seeks to trump a hostile offer by Kraft Foods Inc , a source familiar with the matter said on Friday.

Swiss food giant Nestle may consider a bid for Cadbury to challenge a hostile 9.9 billion pound bid by Kraft Foods and a potential move by Hershey, Bloomberg reported on Sunday.

Cadbury would prefer a merger with Hershey rather than Kraft Foods, the British company's chairman Roger Carr told the Sunday Telegraph.

Kraft Foods may raise its offer for Cadbury or offer more cash in its bid if rival takeover offers emerge, a source familiar with the situation said on Sunday.

RIO TINTO

The miner Rio Tinto expects to receive at least $741 million from the floatation of its U.S. coal-mining unit, Cloud Peak Energy Inc , on the New York Stock Exchange, Rio said on Monday.

BHP BILLITON

The miner said on Sunday it had reached a wage deal with the union of workers who have mounted a 41-day strike at its Spence deposit in Chile, and was now waiting for miners to vote on it.

BRITISH AIRWAYS

The airline's chief executive Willie Walsh has warned cabin crew that he will not compromise on cost-cutting measures ahead of a strike next month, he told the Financial Times in an interview.

ROYAL BANK OF SCOTLAND

The bank will sell $7 billion of debt in a two-part sale with the guarantee of the UK government, IFR reported.

LLOYDS BANKING GROUP

Lloyds Banking Group is expected to announce the terms of its 13.5 billion pound cash call on investors this week, said the Observer.

BARCLAYS

Barclays has restarted talks to sell its three billion pound private equity arm, said the Mail on Sunday.

ROYAL DUTCH SHELL

The oil major is in talks to buy 10 percent of India's Essar Oil as part of a deal where it would sell three European refineries to the Indian firm, the Economic Times reported on Saturday, citing people with knowledge of the plans.

BAE SYSTEMS

BAE Systems said on Sunday it won a 3.4 million pound contract to develop next generation warships for the Royal Navy.

BLACKS LEISURE

Creditors of Blacks Leisure will meet on Monday to try to agree a company voluntary agreement (CVA) to save the outdoor goods company from administration, the British Property Federation said on Sunday.

ITV

The new chairman of ITV, Archie Norman, is likely to change ITV2, ITV3 and ITV4 to a subscription model shortly after he assumes the position in January, reported the Mail on Sunday.

NATIONAL EXPRESS

Phil White has been approached by National Express shareholders about returning to run the firm, said the Sunday Times.

COMPASS

The reporting of Compass's full-year results this week will be boosted by the announcement of a 100 million contract with Lloyds Banking Group, said the Sunday Times.

MITIE GROUP

The maintenance specialist posts first-half results.

NORTHUMBRIAN WATER GROUP

The utility posts first-half results.

HYDER CONSULTING

The infrastructure design consultancy posts first-half results.

PHOENIX IT

The computer services group posts first-half results.

RM

The educational software and services provider posts full-year results.

PROVENTEC

The steam cleaning and coatings technologies firm posts first-half results.

(Reporting by Tricia Wright)