LONDON | Thu Dec 15, 2011 2:12am EST
LONDON Dec 15 (Reuters) - Britain's FTSE 100 index is seen opening down 6-9 points, or 0.2 percent on Thursday, according to financial bookmakers, extending Wednesday's sharp falls as the sell-off continued on Wall Street and in Asia on fears the euro zone crisis could be worsening, and after some disappointing data from China.
The UK blue chip index closed down 123.35 points, or 2.3 percent on Wednesday at 5,366.80, having rallied 1.2 percent on Tuesday, led by weakness in risk-sensitive commodity issues and banks, with concerns over the euro zone debt crisis ratcheted up as Italy's borrowing costs rose to a record high.
Worries over a possible sovereign credit rating downgrade for France were also revived, knocking the country's hard-pressed banks.
After the close on Wednesday, France's Credit Agricole warned it would post a loss for 2011, and said it would write off 2.5 billion euros worth of assets and cut 2,350 jobs in a cull of its investment banking operations.
And after the U.S. close, Fitch downgraded its credit ratings for 5 European banks, including Credit Agricole.
U.S. blue chips ended 1.1 percent lower on Wednesday, at the level they were when London closed, having recovered a touch from heftier session lows.
In Asia on Thursday, MSCI's broadest index of Asia Pacific shares outside Japan was down 2.0 percent, while Japan's Nikkei shed 1.6 percent weighed by weaker-than-expected business sentiment as shown in the Bank of Japan's quarterly Tankan survey.
Hong Kong and Shanghai's benchmark indexes were among the biggest losers in Asia after the release of HSBC's China flash PMI, the latest piece of data to show the world's second largest economy losing steam.
The private sector survey indicated that China's factory output will shrink again in December, adding to the headwinds facing a global economy struggling with sluggish U.S. growth and the euro zone sliding back into recession.
"With concerns over global economic growth in the new year still very much front of mind it's difficult to see what might kick the bulls back into action, although as volumes inevitably start to thin out ahead of the Christmas break next week and with many stocks looking increasingly depressed, ideal conditions for something of a Santa rally may well be forming," said Terry Pratt, Institutional Trader at IG Markets.
On the domestic data front, British November retail sales will be released at 0930 GMT, with a fall of -0.3 percent forecast, after a 0.6 percent rise in October, giving a year-on-year rise of 0.3 percent after a 0.9 percent increase in the previous month.
The CBI industrial trends-orders survey for December will be released at 1100 GMT.
U.S. wholesale inflation numbers will be released at 1330 GMT, with November producer prices seen up 0.2 percent on the month, after a fall of 0.3 percent in October, and the annualised rate seen unchanged at 5.9 percent.
The latest U.S. weekly jobless claims and December's Empire State index will also be released at 1330 GMT, with November U.S. industrial output due at 1415 GMT, and the December Philly Fed index scheduled for 1500 GMT.
* GLOBAL MARKETS-Europe woes prompt yr-end flight from risk
* Wall St stacks up losses as global risks rise
* Nikkei down 1.6 pct, breaks support at 25-day average
* FOREX-Euro inches up but still close to 11-mth low
* Brent little changed at $105 after biggest drop since Sept
* Shanghai copper, zinc fall on Europe debt fears
* Gold steady after carnage, Europe trouble eyed
UK stocks to watch on Thursday are:
RIO TINTO, BHP BILLITON
The Daily Mail's market report notes revived talk that Rio and BHP could both be stalking Walter Energy, and cites analysts as saying the take-out price could be double the current $60 a share.
BARCLAYS, STANDARD CHARTERED
Extra British regulations and taxes on banks will cost Barclays more than 1 billion pounds ($1.5 billion) and Standard Chartered over $500 million a year and are part of a flood of reforms that could backfire, the bosses of the two banks said.
LONDON STOCK EXCHANGE
The London Stock Exchange is in talks with UK regulators on the possibility of establishing a trade repository, or electronic data storage warehouse, that would handle over-the-counter (OTC) derivatives, the Financial Times reported.
JOHN WOOD GROUP
The oil services firm issues a trading update.
SPORTS DIRECT INTERNATIONAL
The sporting goods retailer issues a trading update.
INTERNATIONAL PERSONAL FINANCE
The emerging markets-focused lender issues a trading update.
KELLER GROUP
The ground engineering firm issues a trading update.
MOSS BROS GROUP
The suit hire and retail group issues a trading update.
HIWAVE TECHNOLOGIES
The sound and touch technologies group reports full-year results.
PURSUIT DYNAMICS
The macerator developer posts full-year results.
GCM RESOURCES
The Bangladesh-focused coal miner holds its annual general meeting.
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 Jon Hopkins; Editing by David Cowell)
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