UK Stocks -- Factors to watch on July 8

LONDON, July 8 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
16-21 points lower on Wednesday, according to financial bookmakers, reflecting
sharp falls overnight on Wall Street and in Asia as talk of more stimulus plans
for the U.S. economy and weaker commodity prices knocked sentiment.

The UK blue chip index closed 7.91 points, or 0.2 percent lower on Tuesday
at 4,187.0, a fresh two month low after a 1 percent slide on Monday.

Japan's Nikkei .N225 average hit its lowest point in six weeks on
Wednesday, while U.S. stocks hit a 10-week low on Tuesday as talk of a second
government stimulus plan heightened fears that the economy is not yet on the
path to recovery.

A member of the Obama administration's economic advisory panel said the
United States should plan to possibly provide a second round of stimulus funds
to prop up the economy. [ID:nSP379268]

Following Tuesday's disappointing UK manufacturing output numbers, investors
will have the latest Halifax UK house price survey, released at 0600 GMT on
Wednesday to give further pointers on the state of the domestic economy.

The consensus forecast is for June house prices, as compiled by Halifax, to
be 0.7 percent lower on the month, after a 2.6 percent increase in May, but 14.7
percent higher year-on-year after a 16.3 percent decline in May.

Meanwhile British consumer confidence rose in June as people became more
optimistic about the future of the economy, a Natiowide survey showed overnight
on Wednesday.

The Nationwide consumer confidence index rose to 58 in June from an upwardly
revised 54 in May, almost reaching the 59 reading a year earlier. The original
reading for May was 53. [ID:nLAG003589]

And British annual shop price inflation eased to 0.7 percent in June from
1.3 percent in May -- its weakest since December, as food price inflation hit a
14-month low, British Retail Consortium data showed.[ID:nL7137276]

U.S. May consumer credit numbers should be a focus later in the session, and
the U.S. second-quarter corporate earnings season kicks off as well on
Wednesday, with Alcoa (AA.N) and Pepsi Bottling Group PDG.N among the first.

Leaders from the Group of Eight major industrial nations are expected to
warn against complacency over economic recovery when they begin an annual summit
in L'Aquila, Italy on Wednesday. [ID:nL8395794]

Ex-dividend factors will take 0.31 points off the FTSE 100 index on
Wednesday, with British Land (BLND.L) and Vedanta Resources (VED.L) both losing
their payout attractions.

* Wall St hits 10-week low amid talk of new stimulus [ID:nN07333710]

* GLOBAL MARKETS-Nikkei, oil hit 6-wk lows on recovery worry [ID:nL8431987]

* Nikkei hits 6-wk low on yen, machinery stocks slide [ID:nT91564]

* FOREX-Yen hits 6-wk high vs euro as risk appetite ebbs [ID:nT92181]

* TREASURIES-Weak stocks, decent auction ignite bond rally [ID:nN07596029]

* Oil falls for sixth day towards $62 on inventory builds [ID:nSP435918]

* PRECIOUS-Gold pressured by firmer dollar, weak oil [ID:nT97022]

* METALS-Shanghai copper down 1 pct as econ worries linger [ID:nSHA84678]

UK stocks to watch on Wednesday are:

BANKS

British finance minister Alistair Darling will unveil a blueprint for
preventing a re-run of the credit crunch that forced it to bail out banks with
billions of pounds of taxpayers' money, with the proposals expected to include
making banks build up capital reserves and ringfence everyday banking
activities. [ID:nL8724463]

MARKS & SPENCER (MKS.L)

The retailer's board is expected to be on the receiving end of a big
investor revolt for the second year in a row when shareholders meet for the
retailer's annual meeting on Wednesday, with Executive Chairman Stuart Rose
under pressure for combining the roles of chairman and chief executive.
[ID:nL7678855]

REED ELSEVIER (REL.L)

The publisher is selling part of Reed Business Information (RBI) amid poor
trading conditions and the trade magazine's reduced valuation, with Clive
Jacobs, the former vice chairman of lastminute.com, buying TWgroup, RBI's travel
publishing unit in a sale that one analyst predicts will mark the beginning of
RBI's break up and suggests that Reed is open to offers, the Financial Times
said.

TULLOW OIL (TLW.L)

The oil explorer issues a trading update.

3I GROUP (III.L)

The private equity firm holds its annual general meeting.

CARILLION (CLLN.L)

The building and outsourcing firm issues a trading update.

PAYPOINT (PAYP.L)

The cash machines group hods its annual general meeting.

TELECOM PLUS (TEP.L)

The utility services group holds its annual general meeting.

TOUCHSTONE GROUP TCHG.L

The business software firm releases its full-year results.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]
(Reporting by Jon Hopkins; Editing by Greg Mahlich)