Sasha Jovanovic
7 min read
The Morning Bull – UK Market Morning Update Tuesday, 27 Oct 2026
UK markets look set for a positive bias at the open, with sentiment driven mainly by a surprisingly firm domestic activity picture. Fresh PMI data is giving investors a cleaner growth story to trade.
The S&P Global UK Manufacturing PMI printed at 52.8 for October, while Services and Composite readings both came in at 53.1. Readings above 50 point to expansion, so this cluster of numbers signals broad based private sector momentum.
Stronger PMIs can pressure rate expectations because persistent demand often links to stickier inflation. That combination tends to keep borrowing costs elevated for longer, which can squeeze interest sensitive areas while supporting businesses with pricing power and solid order books.
The unresolved question now is whether this growth pulse changes the tone around the upcoming UK Autumn Budget. Any hint of looser fiscal plans would test how far investors really want to push this new UK resilience narrative.
Stocks to Watch Before the Opening Bell
Ithaca Energy (ITH)
The UK government is weighing whether to scrap the £8.7b Rosebank oilfield, where Ithaca Energy holds a 20% stake. Management has signalled it may stop investing in the UK if approval is refused. Political risk is front and centre, so pay attention to any shift in Energy Secretary Miatta Fahnbulleh’s stance or fresh cabinet comments.
Barclays (BARC)
Rosen Law Firm has started a securities class action investigation into Barclays, linked to exposure to collapsed mortgage provider Market Financial Solutions. The inquiry focuses on whether earlier disclosures were misleading. Legal overhangs can affect capital plans and investor confidence, so new filings or responses from Barclays will be key to watch.
3i Group (III)
3i Infrastructure, part of 3i Group, is backing Future Biogas as it buys the remaining 49% of six anaerobic digestion plants for £104m. The sites are now fully owned after earlier 21% underlying earnings growth since 2024. Full control points to a clearer focus on UK green gas, with scope for capacity and efficiency projects.
Top Movers
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Computacenter (LSE:CCC) jumped 13.07% after raising 2026 profit guidance and highlighting a record AI driven order backlog.
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Man Group (LSE:EMG) gained 6.63% on an expanded Meiji Yasuda partnership and a planned ¥200b private credit commitment.
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Babcock International Group (LSE:BAB) rose 6.39% as investors bought into broader FTSE 100 strength in industrial and defence related stocks.
