LONDON, Aug 18 (Reuters) - Britain's FTSE 100 index is seen opening up 29-32 points, or as much as 0.5 percent higher on Monday, according to financial bookmakers. For more on the factors affecting European stocks, please click on
* September futures on the index were up 0.6 percent at 0629 GMT.
* The UK blue chip index ended the day flat on Friday, 6,689.08 points, erasing earlier gains after news broke of a Ukrainian attack on a Russian convoy, fuelling fears of an escalation in the conflict.
But the index was poised to rise on Monday as worries over Ukraine waned.
Ukrainian forces have raised their national flag over a police station in the city of Luhansk that was for months under rebel control, Kiev said on Sunday, in what could be a breakthrough in Ukraine's efforts to crush pro-Moscow separatists.
* Asking prices for houses in Britain have fallen at the sharpest pace on record for the month of August, led by a drop in London, as the market gets ready for higher interest rates, a survey showed.
* RIO TINTO : Rio Tinto is set to decide on its stake in a long-dormant copper mine in Papua New Guinea's Bougainville after the passage of a new mining law on the island, with the company possibly pulling out of the project after a quarter of a century.
* BANKS: The Serious Fraud Office is looking into allegations of high street banks misusing government schemes designed to boost lending to small businesses, the Times reported on Sunday.
* CARILLION, BALFOUR BEATTY : The board of construction firm Carillion is weighing up options to sweeten its proposal for a 3 billion pound merger with rival Balfour Beatty, the Times reported.
Separately, Carillion has signed a 90 million pound contract for a residential development in London.
* BOVIS HOMES : The housebuilder said it expected to see a significant increase in 2014 profits, in line with its forecasts, as it posted first-half results boosted by a record number of completions.
> Financial Times
> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com (Reporting by Tricia Wright; editing by Blaise Robinson)