UK Stocks -- Factors to watch on April 7

LONDON, April 7 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
2-7 points, or as much as 0.2 percent higher on Tuesday, according to financial
bookmakers, after Monday's late decline after Wall Street ended off lows and
Asian markets moved higher overnight.

The UK blue chip index closed 36.13 points, or 0.9 percent lower on Monday
at 3,993.54, surrendering the 4,000 level recaptured last week.

Investors will have the latest UK industrial and manufacturing production
numbers to digest later this morning.

The pace of contraction in Britain's dominant services sector eased in the
frrst quarter of this year although manufacturing plumbed new depths, a survey
by the British Chambers of Commerce showed late on Tuesday.

The survey of more than 6,500 firms tallies with last week's purchasing
managers' surveys in suggesting Britain's recession may have passed its lowest
point. [ID:nL6115238]

Domestic corporate news is thin on the ground so investor attention will be
on results from U.S. aluminium producer Alcoa (AA.N) which will kick off the Q1
earnings season across the Atlantic later on Tuesday.

Toxic debts racked up by banks and insurers could spiral to $4 trillion, new
forecasts from the International Monetary Fund are set to suggest, The Times
reported on its website without citing sources. [ID:nT186243]

The head of Britain's consumer affairs watchdog said on Tuesday that
customers would suffer if the government failed to prevent the recent mergers of
troubled banks from leading to monopolistic behaviour.

John Fingleton, chief executive of the Office of Fair Trading, writing in
the Financial Times said regulators must avoid a "two-tier system" developing
between newly-created banking giants and new entrants. [ID:nL7320445]

"Once again...the fundamentals are thin on the ground so sentiment will
remain a key driver and if there's a reluctance to extend longs ahead of the
weekend break then again any rally may struggle to find support," said Jimmy
Yates, head of equities at CMC Markets.

* Wall Street rally stumbles as bank fears reemerge [ID:nN06420205]

* Stock rally pauses as bank worries flare again [ID:nHKG186889]

* Nikkei edges up but financials under pressure [ID:nT187855]

* Yen, dollar rise in twitchy market, RBA in focus [ID:nT169057]

* TREASURIES-Rise in Asia, eyes on more supply [ID:nT188776]

* Oil steadies at $51; eyes shares, U.S inventories [ID:nSP409632]

* Copper hits 5-month high, chases LME [ID:nSP412925]

* Gold edges up in technical rebound, ETF unchanged [ID:nSP36089]

UK stocks to watch on Tuesday are:

BRITISH AIRWAYS BAY.L

The airline has proposed a shake-up of employee pay and conditions in a move
that could lead to substantial cuts in remuneration and holidays for its 13,500
cabin crew, The Times reported.

RIO TINTO (RIO.L)

The miner will cut bauxite production at its Weipa in northeastern Australia
by about 23 percent in response to falling demand as the global economy slows.
[ID:nSYD440621]

EASYJET (EZJ.L)

The discount airline will report March traffic numbers.

MICHAEL PAGE MPS.L

The recruitment firm will issue a trading update.

VICTREX (VCTX.L)

The specialty chemicals firm will issue a trading update.

PHOENIX IT GROUP (PHIT.L)

The technology firm will issue a trading update.

SPRING GROUP SPGR.L

The recruitment group holds its annual general meeting.

LAW DEBENTURE CORP. (LWDB.L)

The financial services group holds its annual general meeting.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]
(Reporting by Jon Hopkins)