The UK blue chip index is seen down 8 point to up 4 points after it closed 11.56 points lower on Friday at 4,241.01.

On the macro front, investors will look to May Bank of England consumer credit and mortgage lending numbers for clues to the recovery of the domestic economy.

No major U.S. data is due on Monday, so the focus will be on Thursday's June U.S. jobs report.

Energy stocks are likely to be under pressure with crude slipping beneath $69 per barrel.

In a sign that the recession may be easing, the annual fall in house prices in England and Wales slowed for a third successive month in June after rising demand outpaced the supply of homes for sale, property data company Hometrack said.

Banks will be in focus once again after Business Minister Peter Mandelson said Britain plans to keep financial regulation in the hands of a beefed-up Financial Services Authority rather than transfer the powers to the Bank of England.

UK stocks to watch on Monday are:

ANGLO AMERICAN

Anglo American is building its defences against a 41 billion pound merger approach from Xstrata by plotting talks about a major Chinese investment, the Sunday Telegraph reported.

VODAFONE

British mobile phone operator Vodafone Group is considering a bid for T-mobile UK, even though any deal could be stopped by regulators, the Financial Times reported on Monday.

MARKS & SPENCER

Shareholder of the retailer, the Local Authority Pension Fund Forum, is backing Sir David Michels, the former Hilton boss, to replace Stuart Rose as chairman, reported the Sunday Times.

ITV

The broadcaster has placed Elizabeth Murdoch on the short-list to become the company's new chief executive, reported the Sunday Telegraph.

NATIONAL EXPRESS

British train and bus operator National Express Group has rejected an unsolicited takeover bid from rival FirstGroup , the Financial Times reported on Monday without citing sources.

ASOS

The on-line retailer reports full-year results.

PREMIER FOODS

The food producer issues a trading update.

SENIOR <SNR.L.

The engineering group issues a trading update.

SIBIR ENERGY

The Russian-focussed oil and gas explorer holds its annual general meeting.

CASPIAN HOLDINGS

The oil and gas development company holds its annual general meeting.

ARIANA RESOURCES

The Turkey-focussed gold explorer holds its annual general meeting.

BALTIC OIL TERMINALS

The oil terminals operator holds its annual general meeting.

(Reporting by Simon Falush)