Britain's FTSE 100 index is seen opening down 26 to 28 points on Friday, financial bookmakers said, after the index ended up 0.5 percent at 5,896.7 points in the previous session.
The market is expected to take its lead from Wall Street where stocks fell on Thursday after a report showed factory activity in the Mid Atlantic region shrank in September for the first time in over three years, prompting worries about a slowdown in the U.S. economy and corporate profits.
Last night's negative figure for the Philly Fed index hit U.S. stocks and Asia has followed over concerns that the economy is slowing faster than has been expected, said Martin Slaney of GFT Global Markets. Europe is also called lower as a result as big exporters to the U.S. could be hit.
Stocks to watch on Friday are:
MFI FURNITURE GROUP
The company said it had agreed to sell its loss making retail operations to private equity group Merchant Equity Partners (MEP) for a nominal 1 pound, and change its name to Galiform.
BRISTOL MYERS SQUIBB
A panel of European experts has backed the use of two new drugs to treat diabetes and cancer from Eli Lilly and Co and Bristol Myers Squibb Co.
Lear Corp. said it has agreed to integrate Transense Technologies's batteryless tyre pressure monitoring system technology (TPMS) with its remote keyless entry receiver technology.
U.S. Congressional leaders are trying to forge a compromise that would allow them to push through legislation banning most forms of Internet gambling, aides said on Thursday.
Meanwhile BETonSPORTS, facing civil and criminal charges in the U.S., has told prosecutors it wants to negotiate a settlement, The Times reported.
JP Morgan recommended switching from France's Pernod Ricard and into Diageo for less risk and greater reward.
The UK listed miner told Reuters late Thursday it will invest some $1.4 billion (736 million pounds) in Peru's Rio Blanco copper project between 2008 and 2014.
Europe's biggest mobile retailer is preparing to open a handful of stores in New York under plans to expand internationally, The Times reported.