The Morning Bull – UK Market Morning Update Wednesday, 4 Nov 2026
UK equities look set for a firmer open, with FTSE 100 futures in modest positive territory as investors latch onto a clear theme. The dominant driver is a synchronised upswing in global manufacturing activity that supports a risk-on tone.
At home, the UK manufacturing PMI printed 52.8 in October 2026, the strongest reading since May and comfortably in expansion territory. Eurozone and German manufacturing PMIs above 52 and 54 add a second leg, pointing to firmer regional demand that matters directly for UK exporters.
Healthier factory surveys typically feed into stronger order books and revenue visibility, which can support earnings expectations for capital goods suppliers and industrial services firms. Improved business confidence, paired with plans for AI driven investment, also hints at steadier capital spending paths and potentially more resilient hiring plans.
The open question is how long this manufacturing momentum can run without reigniting broader inflation pressure that might keep global central banks cautious. Upcoming Euro Area inflation data and the Bank of England decision on Thursday now sit as the key tests of this early optimism.
Stocks to Watch Before the Opening Bell
Babcock International Group (BAB)
Babcock has awarded a £600m upgrade contract for the 10 Dock facility at Devonport to the KierBAM joint venture. The work aims to expand maintenance capacity for current and future Royal Navy submarines and is run through Babcock’s Major Nuclear Capital Programmes unit. Readers can watch how this long term infrastructure work feeds into workload visibility and cash commitments.
Shell (SHEL)
Shell is exiting its 16.67% non operated interest in the North West Shelf LNG project for about US$1.45b, selling to Abu Dhabi backed XRG. Completion is targeted by 2027, subject to approvals. The move lines up with Shell’s focus on what it sees as advantaged integrated gas positions, while it keeps exposure to Australia through assets such as QGC and Prelude FLNG.
Shell also features in Queensland’s Taroom Trough push, where authorities highlight multi billion barrel potential and early light oil output of around 300 barrels a day. That activity ties Shell into a regional energy security story and adds another thread to its global gas and liquids portfolio.
Marks and Spencer Group (MKS)
Marks and Spencer Group is pushing harder into the weekly grocery shop in the UAE. The retailer plans five Foodhalls over the next 12 months, including a 15,327 sq ft site at Dubai Festival City that will be its largest Foodhall outside the UK. Management intends to cut prices on more than half of UAE Foodhall items and broaden the range to build bigger baskets.
