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UK Stocks-Factors to watch on Thurs, Sept 27

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Thu Sep 27, 2012 2:20am EDT

* Britain's FTSE 100 is seen opening up 9 to 16 points, or up to 0.3 percent on Thursday, according to financial bookmakers. Futures on the index gained 0.4 percent by 0618 GMT. For more on the factors affecting European stocks, please click on

* Stronger metals and energy prices may help a slightly more positive tone on the resource-heavy UK bourse, with London copper recovering from two-week lows as traders bet on a fourth-quarter recovery in metals demand in China . Gold also moved higher, as did oil prices.

* In equities overnight, China's Shanghai Composite surged as much as 3 percent, with traders attributing the rise to speculation that authorities might take steps to prop up the mainland's beleaguered stock markets.

* Banks also benefited from news that China's central bank injected a net 365 billion yuan ($57.92 billion) into money markets this week, in the largest weekly injection in history.

* The UK blue chip index finished 91.62 points, or 1.6 percent, lower on Wednesday at 5,768.09, the lowest close since early September and its biggest one-day fall in two months.

* Thursday's data calendar features revised UK second quarter GDP, euro zone sentiment data for September and U.S. durable goods orders for August.

* But investors are likely to pay more attention to a cabinet meeting in Spain, where the government is due to present the first draft of its 2013 budget, offering a glimpse of how committed it is to the unpopular austerity measures. The expected series of economic reforms could reassure investors who are waiting for Madrid to request an international bailout, for which such measures will be key.

* COMPASS GROUP - The caterer reaffirms full year expectations, as positive trading momentum in North America and fast growing and emerging countries offsets worsening economic conditions in Europe.

* TATE & LYLE - The sweetener and starches maker expects overall volumes in first half to be lower.

* PETROFAC - The oil services firm wins a $200 million project in Kuwait.

* VODAFONE - The mobile operator details expected integration costs and synergies from CWW acquisition.

* AVIVA - The insurer has agreed to sell the bulk of its Sri Lanka operation to AIA Group Ltd in a deal valued at $109 million.

* RBS - Royal Bank of Scotland will sell shares in its insurance division Direct Line Insurance at a lower-than-expected level, the Financial Time said on Thursday.

TODAY'S UK PAPERS

> Financial Times

> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit* BridgeStation: view story .134(Reporting By Toni Vorobyova; Editing by Tricia Wright)

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