Sasha Jovanovic
7 min read
The Morning Bull – UK Market Morning Update Friday, 23 Oct 2026
UK stocks are set for a cautious positive open, with FTSE 100 futures edging higher as investors focus squarely on stubborn domestic inflation. Sentiment is constructive but constrained, as the inflation backdrop complicates the rate outlook.
Headline UK inflation printed at 3.5% in September, with core at 2.8% and producer prices up 4.6% year on year. That trio signals firm price pressures at both the consumer and factory gate level, which keeps the prospect of restrictive policy in play.
Sticky inflation matters for borrowing costs because it makes rapid rate cuts less likely. Higher for longer policy rates feed into pricier mortgages and corporate debt, squeezing interest coverage and pressuring cash flows in more leveraged, rate sensitive corners of the market.
The open question now is simple: does incoming UK data, starting with today’s retail sales and upcoming PMIs, confirm that the economy can absorb this inflation mix without tipping into a sharper growth slowdown that forces an earlier policy rethink?
Stocks to Watch Before the Opening Bell
Rathbones Group (RAT)
Rathbones Group reported funds under management and administration of £121.1b, a 7% year-on-year rise, supported by a second consecutive quarter of net inflows in Wealth Management. Asset Management saw outflows as UK retail demand for active equity products remained under pressure. Management highlighted a regulatory remediation programme with projected costs of about £60m through mid 2028.
Rio Tinto Group (RIO)
Rio Tinto has approved a US$1.9b investment in the Kangwinan bauxite project in Queensland, adding planned capacity of 20 million tonnes a year. The mine is intended to replace output from Andoom and help offset the expected closure of Gove in 2029. A separate Canadian government investment announcement today focuses on low carbon aluminium in partnership with Rio Tinto Alcan and Aluminerie Alouette.
AstraZeneca (AZN)
AstraZeneca secured US FDA accelerated approval for Ultomiris in primary IgA nephropathy after Phase 3 data showed a reduction in proteinuria. Full authorisation depends on further evidence from the ongoing I CAN trial to confirm benefits for kidney function. Ultomiris now enters a crowded IgAN treatment space that already includes therapies from Asahi Kasei, Novartis, Roche and Vertex Pharmaceuticals.
Top Movers
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Rentokil Initial (LSE:RTO) jumped 8.61% after confirming 2026 profit guidance, organic revenue growth, and launching a share buyback.
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London Stock Exchange Group (LSE:LSEG) climbed 7.69% as investors responded to the Octus deal and an upgraded revenue and margin outlook.
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Rightmove (LSE:RMV) rose 3.63% following recent director share buying and updates on Barclays crossing the 6% threshold.
