LONDON, Jan 16 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
about 0.4 percent lower on Wednesday, extending the previous session's sharp
losses, according to financial bookmakers, as fears of a U.S. recession mount.
U.S. stocks plunged more than 2 percent on Tuesday after a record loss at
Citigroup (C.N) and the worst showing for retailers in five years fuelled fears
that the economy was heading into recession. In Asia, Japan's Nikkei .N225
fell more than 3 percent.
Further adding to the gloom, Intel Corp (INTC.O) posted quarterly results
and an outlook behind Wall Street targets after the U.S. market closed.
[ID:nN15547839]
The U.S. dollar, meanwhile, hit a 2-1/2-year low against the yen and a
record low versus the Swiss franc.
In the UK, a survey showed house prices fell in December at their fastest
rate since the recession of the early 1990s, raising fears the country's once
buoyant housing market is heading for a sharp downturn. [ID:nL15378308]
"The U.S. sets the tone today. We are expected lower on the disappointing
news from Boeing (BA.N) and Intel," said Martin Slaney, head of derivatives at
GFT Global Markets.
Financial bookmakers expect the FTSE 100 to open down 20 to 25 points after
closing down 3.1 percent at 6,025.6 on Tuesday when it hit its lowest closing
level since Aug. 17. The UK benchmark index has lost 6.7 percent so far this
year.
"The FTSE 100 is going to be eyeing that 6,000 level that hasn't been tested
since last August," said James Mitchell, a trader at CMC Markets.
Investors will also keep an eye on UK job figures due at 0930 GMT and U.S.
inflation data due at 1330 GMT for further clues on the state of their
economies.
Imperial Tobacco (IMT.L) and British Land (BLND.L) will trade without the
rights of dividend this session and together are expected to take 1.6 points off
the index.
* US STOCKS-Weak retail sales, Citigroup plague Wall Street [ID:nN15549901]
* Nikkei hits 26-month low, led down by exporters [ID:nTKF002951]
* GLOBAL MARKETS-Stocks thrashed, dlr flops on recession fears [ID:nL16505379]
* Oil steady ahead of data after over $2 tumble [ID:nSP68470]
* Dollar tumbles on Fed rate cut speculation [ID:nL16502131]
* TREASURIES-Futures hit 4-year high in Asia [ID:nT10709]
* Gold pauses for breath but holds near record high [ID:nSP263416]
UK stocks to watch on Wednesday are:
RIO TINTO (RIO.L)
The world's second biggest mining group, fighting a takeover approach from
rival BHP Billiton (BLT.L), said it had pulled out all the stops to boost output
in 2007, and saw its fourth quarter is due to issue its trading statement.
[ID:nSYD230976]
NORTHERN ROCK NRK.L
British Prime Minister Gordon Brown gave one of the strongest indications
yet on Tuesday that the troubled mortgage lender could be nationalised before
being privatised again at a later stage. [ID:nL15582356]
BP (BP.L)
JPMorgan cuts BP's price target to 650 pence from 690 pence and rates the
stock at "neutral".
LONDON STOCK EXCHANGE (LSE.L)
The London Stock Exchange is set to open a marketing office in Beijing this
week in an effort to catch up in the lucrative listing business in China, the
Financial Times reported.
EXPERIAN (EXPN.L)
The credit information firm is due to issue its trading statement.
PUNCH TAVERNS (PUB.L)
The pub group is due to issue its trading statement.
CABLE & WIRELESS (CW.L)
Morgan Stanley downgrades Cable & Wireless to "equal weight" from
"overweight".
DSG INTERNATIONAL (DSGI.L)
The electrical goods retailer is due to issue its trading statement.
JJB SPORTS (JJB.L)
The sporting goods retailer is due to issue its trading statement.
WOOLWORTHS WLW.L
The sweets-to-DVDs retailer is due to issue its trading statement.
MILLENNIUM & COPTHORNE (MLC.L)
Citigroup downgrades Millennium & Copthorne to "hold" from "buy".
TODAY'S UK PAPERS
> Financial Times [PRESS/FT]
> Other business headlines [PRESS/GB]
(Reporting by Dominic Lau)
