UK Stocks -- Factors to watch on June 19

LONDON, June 19 (Reuters) - Britain's FTSE 100 .FTSE index is expected to open flat to down 4 points on Thursday, financial bookmakers said, as steep overnight losses in Asian and U.S. markets hit sentiment in Europe but stronger oil prices may help to support heavyweight commodities.

The index ended the previous session down 1.8 percent, or 105 points, at 5,756.9. Across the Atlantic, the Dow industrials sank to their lowest close in three months on Wednesday as worries about a weak economy compounded credit sector concerns and drove shares of banks, autos and transportation companies sharply lower.

Asian shares tumbled on Wednesday, with Japan's Nikkei index .N225 falling more than 2 percent.

Crude oil futures CLc1 near $136 a barrel and gold and copper rallying will likely give a boost to mining and energy stocks, helping the FTSE outperform the broader European market.

On the economic front, Bank of England Governor Mervyn King said on Wednesday the British economy was slowing and had to do so to help cool inflation.

Also, King will be held to account by a new Financial Stability Committee as the central bank faces its biggest shake-up since it was made independent by the Labour government in 1997. BoE Deputy Governor John Gieve announced on Wednesday he will quit prematurely next year.

Meanwhile, Britain's residential property market faces three years of falling house prices according to Goldman Sachs, who warned house prices could fall 6 percent this year and 8 percent in 2009 as buyers scared off by higher mortgage costs, the Daily Mail reported.

Investors will eye UK retail sales data, due at 0830 GMT.

"Consumers are going through a rough time, with high oil prices and falling home values there is not much left for the customer to tap into to keep up with their spending habits," said David Evans, market analyst at BetOnMarkets.com.

* Asia stocks tumble, bonds up on growth fears [ID:nSP136338] * Nikkei off 2 pct on US econ worries, firmer yen [ID:nT251511] * Dlr down on rate doubts given weak U.S. economy [ID:nT162050] * Bank and economic fears drive Dow to 3-month low [ID:nN18441526] * Treasury prices dip in Asia, eye gilts after BoE speech [ID:nT165963] * Oil falls towards $136 as Nigeria strike averted [ID:nSIN150963] * Gold approaches $900; platinum, palladium near highs [ID:nSP37195]

UK stocks to watch on Thursday are:

BHP BILLITON (BLT.L)

BHP Billiton is due to file with Chinese competition authorities this month for its planned $170 billion takeover of Rio Tinto Plc/Ltd (RIO.L), but lawyers said a new anti-monopoly law threw up uncertainties. [ID:nSYD133894]

Also, BHP has signed a joint venture with Indonesian miner PT Aneka Tambang Tbk (ANTM.JK) (Antam) to develop nickel laterite resources in eastern Indonesia, Antam said. [ID:nSYD139420]

ANGLO AMERICAN (AAL.L)

The miner has evaluated possible major mergers amid a consolidation wave in the mining sector but has not found anything that would create shareholder value, CEO Cynthia Carroll said on Wednesday. [ID:nL18147046]

BRITISH BANKS Britain's financial watchdog has rushed to change its emergency rules on disclosure of short-selling during rights issues after disocvering a loophole that would have allowed hedge funds to avoid stating their holdings, the Financial Times said.

The Financial Services Authority reversed its position on how to take options into account when calculating the size of positions, according to Darren Fox, partner at Simmons & Simmons, legal adviser to many of London's biggest funds, the FT said.

VODAFONE (VOD.L)

The British-based mobile phone group has pulled out of the auction for Italy's Tiscali (TIS.MI), the Financial Times said on Thursday. The newspaper cited people close to the auction as saying that Tiscali had received at least one offer but that Vodafone would not make a proposal. [nL19440110]

CENTRICA (CNA.L)

Centrica wants to take control of SPE, Belgium's second biggest electricity supplier, but will have to match a bid from EDF (EDF.PA) to do so, the Times reported.

The company is due to release a first-hhalf trading update.

ROYAL BANK OF SCOTLAND (RBS) (RBS.L)

Zurich Financial Services has lined up several banks for its 7 billion pound bid for RBS's insurance assets, the Telegraph reported, adding that Citi, Credit Suisse and JPMorgan are ready to lend the Swiss-based insurance group money for its offer for RBS businesses including Direct Line.

CADBURY CBRY.L

The company is due to release a first-half trading update.

CARNIVAL (CCL.L)

The company is due to release second-quarter earnings results.

BRITISH AIRWAYS (BA) BAY.L

BA will launch a new airline on Thursday that will link New York to continental Europe, the Wall Street Journal reported. [ID:nN18287353]

HBOS HBOS.L

In the past six months HBOS has made 19 changes to two-year fixed rate mortgage deals, the Times reported, adding that the frequent increases will be a blow to homeowners hoping to remortgage on a two-year fixed-rate deal.

BP (BP.L)

A row between BP and Russian shareholders over their joint venture TNK-BP TNBPI.RTS is creating a bad image for investment in Russia, European Trade Commissioner Peter Mandelson said. [ID:nL19469627]

(Reporting by Rebekah Curtis)