Bailey Pemberton
7 min read
The Morning Bull – UK Market Morning Update Thursday, 12 Nov 2026
UK equities are set for a cautious, slightly softer open, with sentiment anchored by a single issue. Sticky US inflation is pushing investors back toward a higher for longer rates mindset worldwide.
The October US CPI report showed headline prices rising 0.4% month on month and core CPI up 0.3%. Those readings, alongside persistent services and transport pressures, have reinforced expectations that the Federal Reserve keeps policy tight and dollar support in place.
That backdrop matters for UK markets because higher US rate expectations tend to drag global yields up, raising borrowing costs for governments and companies. A firmer dollar can also pressure sterling, which feeds through into imported cost structures and earnings translated from overseas.
The key question now is how long this inflation resilience lasts. Upcoming US jobless claims and a run of Fed speeches could either harden the market view of extended tight policy or reopen the door to a gentler rate path narrative.
Stocks to Watch Before the Opening Bell
Diageo (DGE)
Indian customs have impounded more than 40 containers of Diageo Scotch whisky in a dispute over a 150% import tariff on bulk concentrates. The disagreement hinges on whether the UK India trade deal covers these shipments or only finished, bottled spirits. Investors will watch for any resolution that clarifies tariff treatment and restores normal flows into this important market.
Unilever (ULVR)
The UK Competition and Markets Authority has raised serious concerns over the proposed $44.8b to $65b merger between McCormick and Unilever’s food division. Regulators see a potential threat to competition in dry cooking mixes and sauces. Unilever plans to sell the Colman’s brand and has until 18 November to offer remedies, or the deal may move to a Phase 2 review.
Anglo American (AAL)
MMG is revising its remedies to secure EU approval for the planned US$500m purchase of Anglo American’s Brazilian nickel business. The updated offer includes higher ferronickel supply volumes to Europe and more secure contracts with pricing options. Attention now turns to how the European Commission responds, given its concern about supply potentially shifting away from EU stainless steel producers.
Top Movers
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ASOS (LSE:ASC) jumped 6.88% after a fresh Buy upgrade, higher targets, and a long-term GXO renewal.
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Funding Circle Holdings (LSE:FCH) climbed 6.84% as upgraded full-year profit guidance highlighted stronger SME demand and higher margins.
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Watches of Switzerland Group (LSE:WOSG) advanced 5.86% following first-half revenue of £974m and a higher fiscal 2027 outlook.
