UK Stocks -- Factors to watch on Aug 26

LONDON, Aug 26 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening 65 to 79 points lower on Tuesday, according to financial bookmakers, as lingering credit worries over the financial sector and slowing global growth weighed.

U.S. stocks fell sharply overnight as credit concerns hounded financial stocks while global growth worries hurt big technology and industrial companies.

JPMorgan Chase (JPM.N) said the market value of its investments in Fannie Mae (FNM.N) and Freddie Mac (FRE.N) preferred stock has dropped by half to $600 million this quarter. [ID:nN251858]

In Asia, Japan's Nikkei average .N225 dropped 0.8 percent.

UK stock markets were closed on Monday for public holiday. The FTSE 100 .FTSE benchmark ended up 135.4 points, or 2.5 percent at 5,505.6 on Friday. "After yesterday's big sell-off on Wall Street, European equities are set to start the session well into negative territory with London being hit even harder as traders look to catch up after yesterday's market close," said Matthew Buckland, a dealer at CMC Markets.

Bank of England Deputy Governor Charles Bean warned on Monday that the global economic slowdown is likely to "drag on for some considerable time". [ID:nLP542632]

Adding to the gloom, a survey by the Confederation of British Industry showed profitability and optimism in Britain's dominant services sector deteriorated sharply in the three months to August. [ID:nLM709515]

The International Monetary Fund has trimmed its forecasts for 2008 and 2009 world economic growth, largely due to a marked worsening in the outlook for the euro zone, a G20 finance official told Reuters on Monday.

However, Singapore sovereign fund Temasek, which spent billions of dollars on shares in Merrill Lynch MER.N, sees value in banking stocks in the United States and Britain, a senior executive said. [ID:nSGC002237] * Financial worries drive Wall Street down 2 pct [nN25262012] * Nikkei pares losses, but mood remains dark [nT2608] * Asia stocks fall as financial crisis rolls on [nLQ052209] * Dollar gets lift from credit jitters, Ifo awaited [nT6792] * Oil above $115 on tropical storm, Russia tension [nT234801] * Gold bounces to track higher oil, eye on US data [nSP126724]

UK stocks to watch on Tuesday are:

LONMIN (LMI.L), AQUARIUS PLATINUM (AQP.L)

Aquarius Platinum has been in talks with South African miner Impala Platinum (IMPJ.J) about mounting a joint takeover bid for Lonmin, the Daily Telegraph said.

BRITISH ENERGY BGY.L

A takeover of British Energy by EDF (EDF.PA) is still the British government's preferred option for the nuclear generator, the Financial Times reported on Monday. [ID:nLP589599]