FTSE 100 Set for Softer Open as Sticky US Inflation Lifts Rate Fears
London's FTSE 100 index was tipped for a cautious, slightly softer open on November 12, 2026, as US inflation data revived worries about higher rates for longer. Retail shares jumped, housebuilder Taylor Wimpey fell, and UK GDP figures were due the same day.
The FTSE 100 index was set for a cautious, slightly softer open in London on Thursday, November 12, 2026, as sticky US inflation pushed investors back toward a "higher for longer" view on interest rates.
The October US consumer price index (CPI) report showed headline prices up 0.4% month on month. Core CPI, which strips out food and energy, rose 0.3%.
Those readings, alongside persistent services and transport pressures, reinforced expectations that the Federal Reserve will keep policy tight and the dollar supported.
Why US rates matter in London
Higher US rate expectations tend to drag global bond yields up. That raises borrowing costs for governments and companies alike.
A firmer dollar can also pressure sterling. That feeds through into imported costs and into the value of overseas earnings translated back into pounds.
Upcoming US jobless claims and a run of Fed speeches could either harden the view of extended tight policy or reopen the case for a gentler rate path.
Stock movers and deal news
Retail and consumer names led the gains. ASOS rose 6.88% after a Buy upgrade, higher price targets and a long-term renewal with GXO. Funding Circle climbed 6.84% on upgraded full-year profit guidance.
Watches of Switzerland advanced 5.86% after first-half revenue of £974m and a higher fiscal 2027 outlook.
Taylor Wimpey fell 4.49% after cutting its 2026 completions outlook and flagging weaker demand from higher mortgage costs. Ferrexpo dropped 3.67% after suspending Ukrainian production because of power disruption following infrastructure attacks. Chemring Group fell 4.54%.
Indian customs have impounded more than 40 containers of Diageo Scotch whisky in a dispute over a 150% import tariff on bulk concentrates. The argument turns on whether the UK-India trade deal covers these shipments or only bottled spirits.
The UK Competition and Markets Authority has raised serious concerns over the proposed McCormick merger with Unilever's food division, valued at $44.8b to $65b. Unilever plans to sell the Colman's brand and has until November 18 to offer remedies, or the deal may move to a Phase 2 review.
Separately, MMG is revising its remedies to win EU approval for its planned US$500m purchase of Anglo American's Brazilian nickel business.
Data in focus
UK third-quarter GDP, also due on November 12, carries a consensus of 0.7% for quarterly growth and 1.9% for the yearly rate. Later market commentary that day showed the FTSE 100 rising as UK GDP growth accelerated.
The goods trade balance is projected near a £19.2b deficit, against £18.01b previously. A wider gap would add pressure on sterling and on import costs for retailers and manufacturers.
UK labour market data on Tuesday, November 17, pairs a 4.7% jobless rate with 3.7% wage growth as the reference points.
