Homebuilders push FTSE 100 higher, rising COVID-19 cases weigh

London's FTSE 100 edged higher on Tuesday, led by gains in homebuilders, while rising cases of a new coronavirus variant in Europe and Asia raised fears of a slower economic recovery The blue-chip FTSE 100 index rose 0.2% with Taylor Wimpey being the top gainer.

Homebuilders advanced 0.6% after mortgage lender Nationwide said British house prices rose by 13.4% in June compared with the same month last year, the biggest annual increase since November 2004.

The domestically focussed mid-cap index was flat.

Builder Barratt Developments rose 0.5% after it named Mike Scott as its chief financial officer. Scott is at present the finance chief of Countryside Properties.

Global sentiment weakened on Tuesday with most Asian stock markets trading lower on concerns that new coronavirus outbreaks in the region could undercut an economic recovery.

Among other stocks, UDG Healthcare inched 0.5% higher after it confirmed that private equity firm Clayton, Dubilier & Rice had raised its offer to buy the London-listed firm to 2.76 billion pounds ($3.83 billion), 5.6% above its original offer.