The FTSE 100 .FTSE index is seen opening down 41 to 45 points, or 0.8 percent on Monday as optimism over a deal to ease the euro zone debt crisis fades, with investors looking for more detail at a Group of 20 meeting later this week.
Investors will next watch the Group of 20 meeting in Cannes, France, on November 3-4 for more details on the deal reached by policymakers to tackle the euro zone debt crisis last week, which included boosting the firepower of the rescue fund and imposing hefty losses on holders of Greek debt.
Key questions still remain unanswered, especially as to how or who will finance the enlarged European Financial Stability Fund (EFSF), Jonathan Sudaria, night dealer at Capital Spreads, said.
Although the head of Europe's bailout fund, Klaus Regling, sought financial support from China on Friday to help ease the bloc's debt crisis, there was no quick deal in sight.
In what has been described as mildly desperate, Regling was quickly dispatched to Asia on Friday in an attempt to drum up funding from China and Japan but has only received a lukewarm response. Traders are unlikely to be in a risk on mood.
Over the weekend, Spain and Portugal called for the United States and other G20 powers to take action to help contain the fallout from the European debt crisis at the G20 summit.
UK stocks to watch on Monday are:
The commodity trader is no longer in talks to provide financing to Indonesian conglomerate Bakrie Group, which is close to a deal on Monday with Indonesian investors to help avert a default on a $1.345 billion loan, two sources with direct knowledge of the deal said.
BT has brought forward by one year its target to roll out a fibre network, meaning two thirds of premises will have access to the superfast broadband by the end of 2014.
The British bank issues a third-quarter trading update.
CAPITAL SHOPPING CENTRES GROUP
The real estate investment firm issues a third-quarter trading update.
The paper firm is issuing a trading update.
(Reporting by Joanne Frearson)