The FTSE 100 held near the 10,500 mark on Monday, with the FTSE 100 Burnham cabinet announcement the dominant focus as Andy Burnham prepared to take office as Prime Minister. The index has traded in a narrow channel around that level since April, with no catalyst strong enough to break it in either direction.
FTSE 100 Burnham Cabinet Watch Keeps Investors in Holding Pattern
Russ Mould, investment director at AJ Bell, said markets were primarily focused on personnel. ‘Investors are keenly awaiting details of who will form Andy Burnham’s cabinet once he becomes UK prime minister today,’ he said.
Mould pointed to the gilt market as the clearest signal of investor sentiment. Shabana Mahmood is the favourite to become chancellor, and gilt yields eased back last week on speculation she would get the job. ‘That’s good for now, but it’s what comes next that really matters,’ he said. ‘Bond investors are looking for any clues on public spending intentions, how they will be funded, and any policies that deviate from the path pursued under the Starmer-Reeves regime.’
With markets in wait-and-see mode, FTSE 100 moves were contained. Computacenter jumped 4.5% and Metlen Energy and Mining fell 2.5%, but all other FTSE 100 constituents moved less than 2% on the day.
Housebuilders were among the fallers. Oil prices added pressure on rate expectations, with Brent crude a focal point after military action between the US and Iran intensified over the weekend.
Susannah Streeter, chief investment strategist at Wealth Club, said in a note: ‘Brent crude has set off on a hot streak, trading around $90 a barrel as military action has intensified between the US and Iran. That’s an increase of 30% from lows seen earlier in the month.’
ICE Futures Europe pricing data shows the front-month October 2026 Brent crude futures contract at $79.03 per barrel as of 8 May 2026, according to ICE Brent Crude Futures exchange data. That is below the $90 level Streeter cited; the discrepancy likely reflects different reference points or timing.
IAG fell 1.5%, partly dragged by Ryanair, whose quarterly update disappointed investors.
Ryanair Profit Slump Weighs on Aviation Stocks
Ryanair’s Q1 FY27 net profit fell 46% to €360 million, with lower fares and higher costs offsetting strong passenger growth, according to aggregated investor data compiled by Quartr.
Traffic figures told a different story. Ryanair carried 22.2 million guests in July 2026, a 7% increase from 20.8 million in July 2025, a new monthly record, with a 96% load factor and over 120,800 flights operated, according to the company’s Ryanair SEC Form 6-K filing.
For H1 FY27, profit was down 18% to €1.79 billion as fare declines outweighed the record passenger numbers, with management striking a cautious note on the outlook, Quartr data shows.
Full-year FY27 traffic is expected to grow 4% to 216 million passengers, with H1 up 6% and H2 up 2%. Ryanair has hedged 80% of its jet fuel requirements for FY27 at $67 per barrel, with 15% of FY28 needs hedged at $85 per barrel, according to the same aggregated data.
Technology-oriented shares were among the better performers on Monday after a positive session for US stocks on Friday. Polar Capital Technology Trust gained as investors returned to AI-focused positions.
The next firm catalyst for the FTSE 100 is Burnham’s first major speech as Prime Minister later on Monday, which markets will assess for any early signal on the new government’s fiscal stance.
