London pre-open: Stocks to rally ahead of BoE announcement

5th Nov 2026 07:27

(Sharecast News) - London stocks were set to surge at the open on Thursday following strong gains on Wall Street, as investors eyed the latest policy announcement from the Bank of England and sifted through a raft of corporate news.

The FTSE 100 was called to open around 110 points higher.

The BoE is widely expected to hike interest rates by 25 basis points to 4%. Neil Wilson, UK investor strategist at Saxo Markets, said: "Markets are priced for the Monetary Policy Committee to vote for the first hike in over three years in what's anticipated to be a short, precautionary tightening cycle to get in front of possible second order inflation effects from the persistently high energy prices.

"I remain of the opinion that the market pricing for four hikes this cycle is too hawkish, but must concede that the Bank will reluctantly raise rates this month to pre-emptively avoid a later spike in inflation, with the surprisingly resilient economic backdrop providing some ballast."

In corporate news, third-quarter sales at Next beat expectations, driven by the clothing retailer's international operations, although UK growth was volatile after the hot summer weather that deterred shoppers from venturing out.

In the 13 weeks to 31 October, total full price sales were up 8.1% versus last year, £33m ahead of guidance of 5.8% for the second half. International sales were up 32.2%, against forecasts of 20.5% on the back of profitable marketing. Full-year guidance for an 8.5% rise in annual profits to £1.25bn was held.

Drinks giant Diageo reiterated its full-year outlook despite ongoing softness in North America.

Updating on trading, the owner of Guinness and Smirnoff said first-quarter net sales rose 1.2%, or 1.4% on an organic basis, to $4.93bn, with volumes up 1.1% and the price/mix 0.3%.

All regions showed organic growth during the period, apart from North America, Diageo's biggest market, where sales fell 3.6%. But the blue chip insisted trading was line with expectations, and left its full-year outlook unchanged.

BP said it has sold a 5% stake in Norwegian oil and gas producer Aker BP for approximately $1.06bn (£810m), reducing its holding from 15.9% to 10.9% as it looks to strengthen its balance sheet. The oil major now expects divestment and other proceeds of around $9bn in 2026, roughly $1bn higher than previously forecast.

Insurer and asset manager M&G reported £1.8bn of net inflows from open business in the third quarter, maintaining positive momentum across the group as strong demand for annuities and continued institutional inflows supported growth.

The firm said net inflows from open business reached £4.2bn in the first nine months of 2026, with total assets under management and administration standing at £385bn at 30 September, broadly unchanged from £387bn at the half-year stage