UK Stocks -- Factors to watch on Oct 6

LONDON, Oct 6 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
13-21 points, or as much as 0.4 percent higher on Tuesday, according to financial
bookmakers, following overnight strength on Wall Street and in Asia.

The UK blue chip index closed 35.63 points, or 0.7 percent higher on Monday
at 5,024.33 after U.S. ISM non-manufacturing data came in better than forecast.

U.S stocks bounced back from a four-day losing streak as optimism about the
upcoming corporate earnings season gathered steam and the ISM data showed the
economy's critical services sector expanded for the first time since August
2008.
The dollar fell overnight, however, after UK newspaper the Independent said
Gulf Arab states were in secret talks with Russia, China, Japan and France to
replace the U.S. dollar with a basket of currencies for the trading of oil.

Crude prices CLc1 ticked back above $70 a barrel as the implications of
such a change were assessed, while the weak dollar helped lift metal prices
which is expected to give a boost to heavyweight mining stocks in London.

Banks are likely to be a focus as well, with French peer Societe Generale
(SOGN.PA) announcing plans for a 4.8 billion eur capital increase to enable it
to repay state support and persue external growth opportunities. [ID:nWEA3786]

Meanwhile, New York Federal Reserve President William Dudley said on Monday
that a tepid economic recovery should allow the Fed to keep interest rates at
rock-bottom lows for a prolonged period. [ID:nN05394214]

Australia's central bank, however, upped its key cash rate by 25 basis
points to 3.25 percent on Tuesday, saying it was prudent to gradually take back
policy accommodation now that the worst danger for the economy had passed
[ID:nSYD520296].

Investors will have some UK data to digest on Tuesday, with industrial
output in August seen rising 0.2 percent on the month, after a 0.5 percent
increase in July, giving a year-on-year decline of -8.7 percent, against a -9.3
percent fall in the previous month.

Manufacturing output is forecast to rise by 0.3 percvent, after a 0.9
percent gain in july, with the annualised decline slowing to -9.3 percent in
August, down from -10.1 in July.

No important U.S. economic data is due for release on Tuesday.

* GLOBAL MARKETS-Dollar skids on Gulf talk, Asia shares up [ID:nL6172292]

* US STOCKS-Wall St rises on ISM data, earnings optimism [ID:nN05386954]

* Nikkei flat as banks gain but yen worry weighs [ID:nT34100]

* FOREX-Dlr falls on report of ending its use in oil trade [ID:nT190009]

* TREASURIES-Bonds hold ground, underpinned by weak jobs [ID:nN0549807]

* Oil flat at $70, eyes U.S. stocks, dollar switch talk [ID:nSYD484069]

* PRECIOUS-Gold inches up towards $1,020 on weak dollar [ID:nT178722]

* METALS-Copper rises 1.9 pct as dollar falters [ID:nMAN322462]

UK stocks to watch on Tuesday are:

TESCO (TSCO.L)

Britain's biggest retailer reports first-half results.

ROYAL BANK OF SCOTLAND (RBS.L)

The European Commission wants Royal Bank of Scotland to shed up to 10
percent of its small business customers as the penalty for receiving billions of
pounds of state aid, The Times reported on Tuesday. [ID:nB154317]

LLOYDS BANKING GROUP (LLOY.L)

The Times reported that Lloyds Banking Group, 43 percent owned by the
British government, is also under pressure from Brussels to reduce its share of
personal accounts by 10 percent. [ID:nB154317]

CADBURY CBRY.L

Hopes of a bidding war for the confectionery firm are fading fast, as key
potential suitors signlled a lack of interest, the Daily Mail said.

FRIENDS PROVIDENT FP.L

Private shareholders in Friends Provident vented their disapproval over the
impending 1.9 billion pounds takeover by Clive Cowdery's Resolution at a meeting
yesterday, the Daily Mail said.

BHP BILLITON (BLT.L)

Workers at BHP Billiton's Spence copper facility will likely reject a new
wage offer and strike, a union leader said on Monday, in talks seen as an
indicator for upcoming labour negotiations in the world's top copper producer,
Chile. [ID:nN05400448]

RIO TINTO (RIO.L)

Rio's Alcan Automotive said Monday it would set up a joint venture with
China's Changchun Engley Automobile Parts to try to cash in on a growing market
for fuel-efficient vehicles in the world's third-largest economy. [nN05329203]

Also, Rio Tinto is selling its 80 percent stake in Ghana's only bauxite mine
to Chinese minerals group Bosai, Rio said on Monday. [nL595951]

GLAXOSMITHKLINE (GSK.L)

A U.S. Food and Drug Administration advisory panel gave GlaxoSmithKline's
experimental kidney cancer drug Votrient its full support on Monday, saying the
drug appeared effective and no more risky than other similar medications.
[nN05383169]

CENTRICA (CNA.L)

Centrica is not interested in taking a larger stake in four new nuclear
plants to be built by France's EDF (EDF.PA), The Daily Telegraph reported on
Tuesday citing sources.[ID:nB156734]

ITV (ITV.L)

The board of British broadcaster should put itself up for re-election
because of a lack of agreement over who should lead the company, The Daily
Telegraph reported corporate governance body Pirc as saying. [ID:nB135724]

EASYJET (EZJ.L)

The discount airline issues September traffic numbers.

NORTHERN FOODS NFDS.L

The food producer issues a trading update.

MOUCHEL GROUP (MCHL.L)

The consulting and business services firm delivers full-year results.

IG GROUP (IGG.L)

The spread betting firm holds its annual general meeting.

CHLORIDE GROUP CHLD.L

The chemicals firm issues a trading update.

BUSINESS POST BPG.L

The postal delivery group issues a trading update.

(Reporting by Jon Hopkins)