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US STOCKS-Futures off, weighed by Europe banks, Fed meet eyed

Published 11/03/2009, 07:13 AM
Updated 11/03/2009, 07:18 AM

* Two-day FOMC meeting starts

* Factory orders data due

* UBS posts qtrly loss; RBS, Lloyds, agree to shake-up

NEW YORK, Nov 3 (Reuters) - U.S. stock index futures pointed to a 1 percent drop at the open on Tuesday as poor results from Swiss lender UBS and a shake-up in British banks weighed on investor sentiment ahead of the start of a two-day Fed meeting.

* Britain's two largest retail lenders, part-nationalized Royal Bank of Scotland Plc and Lloyds Banking Group Plc, have agreed to sell hundreds of branches and key businesses to appease European Union concerns over state aid and competition.

* Higher-than-expected accounting charges pushed UBS into its fourth consecutive quarterly loss as it reported disappointing withdrawals at its key wealth and asset management divisions.

* The Federal Open Market Committee begins a two-day meeting on interest rate policy and are expected to keep interest rates close to zero.

* Australia's central bank raised interest rates for a second straight month as it withdrew stimulus from an improving economy, but was careful not to fuel expectations for another hike in December.

* Shares of Ford Motor Co fell 4.5 percent in premarket trading, a day after it said it was seeking to raise additional capital with a convertible debt offering and an equity distribution plan as it reported a quarterly profit.

* The U.S. Commerce Department is to release September factory orders at 10 a.m. EST. Economists expect orders to rise 0.8 percent, compared with a 0.8 percent fall in the prior month.

* S&P 500 futures fell 9.1 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures tumbled 83 points, and Nasdaq 100 futures fell 12.75 points.

* Stanley Works will buy rival Black & Decker Corp for $3.46 billion in stock.

* Dow component Kraft Foods Inc is expected to report third-quarter numbers and is seen earning 48 cents per share, up from 45 cents a year ago.

* Quarterly results are also due from MasterCard Inc and Polo Ralph Lauren Corp.

* Redbook releases its retail sales index of department and chain store sales for October versus September. In the prior period, sales were up 1.8 percent.

* U.S. stocks rose on Monday after another round of solid economic reports but eased from session highs after a Federal Reserve official warned about banks' loan losses.

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