LONDON Aug 6 * Britain's FTSE 100 index is seen opening 1 to 2 points lower, or down just 0.05 percent on Monday, according to financial bookmakers, as markets digested Friday's upbeat U.S. data and the fallout of a European Central Bank meeting last week. For more on the factors affecting European stocks, please click on
* The UK blue chip index closed up 124.98 points, or 2.2 percent, at 5,787.28 points on Friday, as better-than expected U.S. non-farm payrolls helped markets recover their appetite for risk.
* Asian shares rallied to a three-month high as the data added to hopes for bolder European action on the debt crisis underpinned investor appetite for risk.
* The euro scaled a one-month high against the dollar on Monday in choppy trading as traders unwound bearish bets on the single currency.
* Brent crude dropped toward $108 a barrel as a recent surge in prices gave some investors a chance to sell their holdings for profit, while more data was eyed for clues on the health of the global economy and the outlook for oil demand.
* In Britain, BRC retail sales and Halifax house prices data are due to be published.
UK CORPORATE NEWS:
* ROYAL BANK OF SCOTLAND : Brazilian bank Itau Unibanco is considering a bid for Citizens, the British state-controlled lender's American unit, the Sunday Times reported without citing sources.
* ROYAL DUTCH SHELL is pulling some of its funds out of European banks over fears stirred by the euro zone's mounting debt crisis, The Times reported on Monday.
* JJB : The Daily Telegraph reported leading shareholders could force through a major restructuring of the sports goods retailer after losing patience with management over the company's poor performance.
* A four-year investigation into possible manipulation of the silver market looks likely to be dropped by U.S. regulators, the Financial Times reported on Monday.
UK COMPANY ANNOUNCEMENTS:
XSTRATA : Mining group said Qatar had raised its stake in the company to 11.282 percent.
EASYJET : Budget airline reported an 8 percent rise in July passenger numbers.
CATLIN : Insurer returned to profit at H1.
HMV : Confirmed that finance director David Wolffe is to leave the group.
MORGAN SINDALL : Reported a 4 percent rise in H1 profits.
FALKLAND OIL & GAS : Company announced a farm-out agreement with Noble Energy and the start of its Loligo well operations.
HERITAGE OIL : Company said it saw its OLM deal completing in the second half of the year.
WS ATKINS : Awarded Cardiff re-signalling contracts.
TELECITY : Reported a 26.6 percent rise in H1 earnings.
TOUCHSTONE GOLD : Signed a deal with Atlantis to set up a Colombia venture.
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 Sudip Kar-Gupta)