* Britain's FTSE 100 index set to open 29-33 points lower, or as much as 0.6 percent, on Monday according to financial bookmakers. For more on the factors affecting European stocks, please click on
* Britain's FTSE 100 hit its highest level in six months on Friday, thanks to fresh economic stimulus from the U.S. Federal Reserve.
The FTSE 100 closed up 95.63 points, or 1.6 percent, at 5,915.55 points, off an intra-day high of 5,932.62. Implied volatility on the index, seen as a crude barometer of investor caution, hit a one-month low.
* London copper prices slipped on Monday, but still retained most of the previous session's steep climb to a 4-1/2 month top as a new round of U.S. monetary stimulus measures and a weak dollar continued to support prices.
* QE3: The Federal Reserve's attempts to push aid into the heart of the U.S. economy is being blunted by banks struggling to process mortgage applications fast enough, writes the Financial Times.
* ESM: Handing bank oversight to the European Central Bank is not in itself sufficient to allow the euro zone's rescue fund to directly assist banks, Germany's Finance Minister said, warning he expected no such deal on supervision in 2012.
* BAE SYSTEMS : Franco-German aerospace and defence group EADS is prepared to offer Germany a veto right and job guarantees in a bid to gain political approval for a merger with Britain's BAE Systems, Financial Times Germany (FTD) said on Sunday, citing industry sources.
* JJB : Britain's Sports Direct is poised to complete a takeover of struggling rival JJB in a move that could result in half of the latter's stores being closed and thousands of jobs put at risk, the Telegraph reported.
* UK CORPORATE DIARY:
ALLERGY THERAPEUTICS reports full-year results.
AVINGTRANS posts full-year results.
BRADY issues first-half.
INTL FERRO METALS unveils full-year results.
TODAY'S UK PAPERS
> Financial Times
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