UK Stocks -- Factors to watch on July 23

LONDON, July 23 (Reuters) - Britain's FTSE 100 .FTSE index
is seen opening as much as 0.8 percent higher on Wednesday,
according to financial bookmakers, having closed down 40.2
points, or 0.7 percent, at 5,364.1 in the previous session.

The index is expected to track overnight gains made by U.S.
stocks, which rose more than 1 percent as oil prices slid.
Japan's Nikkei average .N225 gained 0.8 percent.

Oil stocks will be in focus, as investors were expected to
keep an eye on crude prices CLc1 that fell as concerns that
Hurricane Dolly might hit major oil and gas production
facilities eased.

But weaker crude prices may lower inflation concerns and
could help the market in general, traders said.

"After a disappointing start yesterday, the main U.S.
indexes pushed back into positive territory helped along by a
sharp fall in the price of oil as Hurricane Dolly looks set to
make landfall away from major refineries," said Paul Webb, chief
dealer at CMC Markets.

"This shift in sentiment has cheered Asian markets overnight
and looks set to roll into the major European indices too."

Edeus, a subprime and buy-to-let home loans specialist, is
offering customers the chance to redeem their mortgages for up
to 8 percent less than they are worth in an attempt to stem
spiralling losses caused by the credit crunch, the Daily
Telegraph said.

* US stocks up as oil's drop trumps earnings [ID:nN22330670]
* Oil near six-week low on demand woes [ID:nSP326180]
* Dollar holds ground after rally [ID:nT339648]
* Treasuries extend slide in Asia [ID:nT339400]
* Fall in oil inspires gains in Asia [ID:nL23632122]
* Nikkei climbs 1 pct as exporters rise [ID:nT339701]

UK stocks to watch on Wednesday are:

ROYAL BANK OF SCOTLAND (RBS.L)

Commonwealth Bank of Australia (CBA.AX), the nation's
second-biggest lender by assets, said it was in talks to buy ABN
AMRO's Australia and New Zealand operations, as it looks to
strengthen its institutional banking and markets business.
[ID:nSYD199900]

BHP BILLITON (BLT.L)

The world's biggest miner reported strong quarterly
production gains on Wednesday led by copper and iron ore, but
warned of a looming decline from the world's biggest copper
mine. [ID:nSYD259450]

GLAXOSMITHKLINE (GSK.L)

GlaxoSmithKline is opening its portfolio of experimental
drugs to external scrutiny in a radical shake-up designed to
develop more successful new medicines, the Financial Times said.

The company is also due to release its quarterly trading
update.

PARAGON (PARA.L)

TPG Capital, the U.S. private equity group, is looking at a
bid for specialist mortgage lender Paragon, less than three
weeks after it infuriated the City by pulling out of a 179
million pound capital injection for Bradford & BingleyBB.L,
the Financial Times said.

WATER COMPANIES

Water companies are pressing the government to give them
more powers to tackle unpaid water bills amid fears that bad
debt will rise as the economic situation worsens, the Times
said.

DAILY MAIL AND GENERAL TRUST (DMGOa.L)

The company is set to announce its trading update.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reprting by Atul Prakash)