The FTSE 100 made steady progress on Monday as investors positioned for a US interest rate cut that looks almost certain after a poor Non-Farm Payrolls report on Friday.

London’s flagship index was 0.1% at the time of writing, as retailers, banks and housebuilders led the index marginally higher.

“The FTSE 100 ticked higher on Monday as investors shrugged off the weak US jobs numbers which affected sentiment at the end of last week,” says AJ Bell investment director Russ Mould.

“Investors were hoping for a Goldilocks number – which was not hot enough to prevent the Federal Reserve from cutting rates when it meets next week but not so tepid that it reignited fears of recession in the world’s largest economy.

“In the end, the reading came in significantly below expectations and led to concern about a downturn in the US.”

Investors will receive their next instalment of major economic data later this week in the form of PPI data on Wednesday then CPI on Thursday. With the Federal Reserve meeting scheduled for next week, some investment banks are calling for a 50-basis-point interest rate cut.

The data released this week will play a significant role in determining the extent of the reduction in borrowing costs when voting members meet next week.

In the meantime, investors are happy to focus on lower borrowing costs and look past the implications of slowing US growth.

In the UK, investors continued to digest a government reshuffle that appears to have avoided any major short-term volatility in UK government debt markets.

“UK Prime Minister Keir Starmer will be hoping the large cabinet reshuffle will quell concerns about his authority and close a highly difficult political chapter,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“Gilt yields eased back after the big moves were made, with some relief that Chancellor Rachel Reeves’ position appears secure.”

It’s a long road to November’s budget, and markets will be vulnerable to any signs of further mismanagement of the economy by Starmer’s government.

That said, the announcement of a partnership between FTSE 250 Vistry and the UK’s housing agency designed to build more homes has been taken well by investors and housebuilders rose on Monday.

Taylor Wimpey and Persimmon added around 1%. Vistry was 3% higher.

Marks & Spencer was the FTSE 100’s top riser after Citigroup raised their rating to a ‘buy’ with a 440p target.

Phoenix Group was firmly at the bottom of the leaderboard after the group released mixed results and announced it would rebrand as Standard Life after acquiring the business from Aberdeen. Phoenix Group was down 6% at the tme of writing.

Vistry Group has forged a strategic partnership with Homes England to tackle England’s housing shortage through a new joint venture backed by £150 million in capital investment.

The collaboration, named Hestia, aims to deliver high-quality, mixed-tenure communities across England. Both organisations are pooling resources to accelerate development on large-scale residential sites, with each project spanning between 400 and 3,000 homes.

Homes England is the UK government’s housing and regeneration agency responsible for ensuring the supply of affordable housing.

In a move that demonstrates broader sector commitment, Hestia plans to sell parcels of land from larger developments to small and medium-sized enterprise (SME) developers.

This strategy serves multiple purposes: it enables smaller developers to participate in large-scale projects whilst maintaining the joint venture’s focus on strategic site delivery. The UK is desperate for new homes, and the plans recognise that to achieve the UK’s 1.5m housing building target, the entire sector needs to be behind the drive to build more homes.

“As one of the country’s largest providers of affordable homes, we are closely aligned with Homes England and share their ambitions for further affordable housing delivery,” said Greg Fitzgerald, Chief Executive of Vistry Group.

“Hestia represents a bold and collaborative step forward in unlocking the potential of large-scale sites and accelerating the creation of thriving, mixed-tenure communities across England.”

Pan African Resources has revealed its intention to migrate from the AIM market to the London Stock Exchange’s main market, seeking admission by the end of 2025.

The gold mining company, which has operations across South Africa and Australia, believes the transition will enhance its corporate profile and provide access to a broader pool of UK and international investors.

This strategic shift comes as Pan African targets its next phase of growth, with gold production expected to increase by approximately 40% to between 275,000oz and 292,000oz for the financial year ending June 2026. The company believes it is well-positioned to benefit from record-high gold prices, with its production completely unhedged from July 2025.

Many companies have left AIM in recent years, yet Pan African Resources is one of very few that have moved from AIM to the Main Market. Most leave AIM and delist.

The shift to the Main Market will be executed through the introduction of existing ordinary shares rather than a fundraising exercise, meaning no new capital will be raised. The company will maintain its dual primary listing structure, continuing its presence on the JSE’s main board alongside the new London main market listing.

Admission remains subject to FCA approval of a prospectus and other regulatory conditions.

“Our proposed listing on the Main Market of the London Stock Exchange represents a natural continuation of Pan African’s growth,” said Cobus Loots, Pan African’s CEO.

“Over the last decade, we have consistently grown both organically and through acquisitions whilst returning capital to our loyal shareholders. We are currently benefitting from the strong gold price environment which we expect will enable us to be fully de-geared (from a net debt perspective) during the course of FY26. We believe the proposed move from AIM to the Main Market will enable us to access a deeper pool of capital and enhance liquidity for the group as we continue our ambitious growth strategy.”

The FTSE 100 gained on Friday as investors digested the August Non-Farm Payroll report, which signalled a potential US interest rate cut at the Federal Reserve’s next meeting.

London’s leading index was 0.3% higher at the time of writing, while S&P 500 futures were pointing to further gains for US stocks.

Following a record high for the S&P 500 overnight on hopes of an interest rate cut this month, the Non-Farm Payrolls had the potential to upset the equity rally.

Thankfully for equity bulls, US Non-Farm Payrolls missed already low expectations and effectively nailed on a rate cut by the Federal Reserve.

US job creation has virtually ground to a halt, with only 22,000 jobs created in August. Economists had predicted 75,000 jobs would be added. Worryingly for the US economy, the June figure was revised lower to 13,000 job losses from 14,000 added.

US markets were also buoyed by a tie-up between OpenAI and Broadcom that sent Broadcom’s shares to all-time highs. OpenAI plans to develop AI chips in a partnership with Broadcom, which could challenge Nvidia’s dominance in the market.

In the UK, Cyclical stocks led the FTSE 100 as investors bought into ‘riskier’ sectors including miners, financials and industrials.

HSBC added around 2% and Rio Tinto rose around 1.5%.

There was minor strength in UK housebuilders after Halifax released data revealing the average UK house price hit a record high in August.

“Housebuilders were in demand as signs of a robust property market raises hopes for stronger earnings in the sector. Halifax says average UK prices are now at a new record high of £299,331,” said Russ Mould, investment director at AJ Bell.

“It’s not a simple green light for the sector. Interest rates arguably need to come down a lot more to convince investors that the sector has legs as mortgage affordability is still an issue for many aspiring homeowners.”

Housebuilders have had another tough year in 2025 as interest rates remain stubbornly high and many in the sector were hit with legacy costs.

That said, Berkeley Group carved out a 1% gain as Halifax’s report coincided with a trading statement in which Berkeley maintained its guidance for the year.

“Berkeley Group’s trading update this morning reflects a company managing well against a difficult backdrop, but investors should remain realistic on near term growth,” explained Adam Vettese, market analyst for eToro.

“The reaffirmation of profit targets and update that 85% of next year’s profits are already secured underscores the strength of its order book and prudent management.”