UK Stocks-Factors to watch on Monday, Feb 20

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The UK blue chip index was expected to open up 45 to 48 points after rising 19.69 points to 5,905.07 points on Friday. Trading volume was expected to be light as U.S. markets will be closed for Presidents Day.

China's central bank cut the amount of cash banks must hold in reserves on Saturday, boosting lending capacity for the second time in nearly three months in a bid to shore up the slowing economy.

Mining stocks will be in focus as a large part of the newly available credit was expected to finance infrastructure and capital investment, fuelling demand for basic resources by the world's largest consumer of raw materials.

The move came as central banks around the world kept accomodative monetary policies to support economic activity. Britons became less worried about their finances in February as inflation eased, and mortgage holders grew more confident that interest rates would stay low for quite some time, a survey showed on Monday.

The improvement in the Markit Household Finance Index survey is the latest sign that consumers are slowly regaining confidence, supporting the Bank of England's view that consumption will start growing again this year.

Also supporting sentiment were expectations that euro zone finance ministers would sign off on a 130 billion euro ($171 billion) rescue package for Greece late on Monday, helping avert a messy default that could aggravate the euro zone debt crisis.

Of interest to energy stocks, supply concerns lifted crude futures on Monday after Iran ordered a halt to its oil sales to Britain and France, in a move seen as retaliation against tightening EU sanctions. The decision came as a team of U.N. inspectors flew to Tehran to press the Islamic Republic over its disputed nuclear programme.

No major economic indicators were due to be released in Britain or the United States on Monday.

* Markets buoyed by China easing, Greece hopes

* Wall St ends week higher before Greece decision

* Nikkei surges 1.4 pct above 9,500 after China's easing

* Euro up on China easing, Greece prospect

* Brent hits 8-mth top after Iran, China moves

* Gold advances on Greece optimism, China easing

* LME copper upbeat after China policy easing

UK stocks to watch on Monday are:

LLOYDS BANKING GROUP

The bank is to strip five current and former senior bankers of more than 1 million pounds in bonuses over their role in the mis-selling of payment protection insurance (PPI), the Daily Telegraph reported on Monday.

CSR

The chipmaker reports fourth-quarter results.

INTL FERRO METALS

The South African miner reports first-half results.

XP POWER

The electrical components maker reports fourth-quarter results.

AFC ENERGY

The developer of low-cost fuel cell systems reports preliminary results for 2011.

ANIMALCARE GROUP

The supplier of veterinary products reports preliminary results for 2011.

TR EUROPEAN GROWTH TRUST

The investment trust reports first-half results.

TODAY'S UK PAPERS

> Financial Times

> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit* BridgeStation: view story .134(Reporting By Francesco Canepa; Editing by Hans-Juergen Peters)

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