* Britain's FTSE 100 index is set to open 29 to 32 points lower, or around 0.6 percent, on Monday, according to financial bookmakers. For more on the factors affecting European stocks, please click on
* London's blue chip index closed up 43.24 points, or 0.7 percent, at 5,871.02 on Friday, rallying after better than expected employment figures in the United States spurred buying of commodity and banking stocks.
* London copper fell more than 1 percent on Monday, giving up last week's gains as worries about the global economy resurfaced, ahead of data from top consumer China later this week for clues on demand.
* Underlining the uncertain outlook, the World Bank cut its growth forecasts for the East Asia and Pacific region on Monday and said there was a risk the slowdown in China could get worse and last longer than expected.
European diplomats discussing the possibility of a separate budget to improve monetary union in the euro zone are considering a sum of around 20 billion euros ($26 billion), according to the Financial Times Deutschland.
* There is no major economic data out in the UK and the U.S. on Monday.
BAE SYSTEMS : Britain will block the proposed $45 billion merger between EADS and BAE Systems if key "red line" priorities are not met, defence minister Philip Hammond said on Sunday, three days before a deadline for detailing the deal.
* UK CORPORATE DIARY: MICHAEL PAGE INTERNATIONAL third-quarter trading update. TODAY'S UK PAPERS > Financial Times > Other business headlines
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(Editing by John Stonestreet)
Keywords: MARKETS BRITAIN FACTORS