The FTSE 100 index is seen falling on Tuesday, tracking weakness overnight in Asia, after ratings agency Standard & Poor's warned it may downgrade 15 euro zone countries, including top-rated Germany and France, if EU leaders fail to agree on a plan to solve the debt crisis at a summit on Friday.
The ratings agency's threat to downgrade euro zone countries en masse came hard on the heels of a Franco-German initiative, to be discussed on Friday, to enforce budget discipline across the 17-member zone through EU treaty changes.
The UK benchmark <.FTSE> looks set to shed 42 to 57 points, or as much as 1 percent, according to financial bookmakers, having risen 15.67 points, or 0.3 percent, to 5,567.96 on Monday.
* Nikkei falls 0.
UK stocks to watch on Tuesday are:
The building supplies group issues a trading update.
The budget airline issues traffic figures.
The manufacturer of high performance polymers issues full-year results.
The van hire company reports first-half results.
MONKS INVESTMENT TRUST
The company reports first-half results.
ELECTRA PRIVATE EQUITY
The company reports full-year results.