UK Stocks-Factors to watch on May 16
(Adds futures, company news)
LONDON May 16 (Reuters) - Britain's FTSE 100 index is seen inching higher on Friday, with the June futures contract up 0.2 percent by 0633 GMT ahead of the cash market open. For more on the factors affecting European stocks, please click on
* The blue-chip FTSE 100 index ended down 37.60 points, or 0.6 percent, at 6,840.89 on Thursday after it reached a 14-year high earlier in day, led down by airlines on profit-taking after a strong rally, with their pullback underscoring fears over the outlook for broader share prices.
* Lofty valuations are stopping investors from putting more money to work in equities. The FTSE 100 is trading on a 12-month forward price/earnings ratio of 13.7 times, against its 10-year average of 11.7 times, Thomson Reuters Datastream shows.
* WM MORRISON : The supermarket's rise on Thursday was helped by mounting speculation that a U.S.-led private equity consortium was weighing a 6.4 billion pound ($10.8 billion), or 275 pence a share, cash offer, the Daily Mail's market report said.
The firm is also the fifth most shorted stock on the UK benchmark, with 6.4 percent of its shares out on loan, data from Markit showed. Continuación...