European shares rise as British homebuilders surge on buyer support scheme
- The pan-European STOXX 600 was up 0.3% at 640.43 points
European shares edged higher on Monday, supported by a rally in British housebuilders, although gains were capped by a rebound in oil prices and elevated bond yields.
The pan-European STOXX 600 was up 0.3% at 640.43 points by 0725 GMT. Most major regional bourses also traded higher.
British housebuilders’ stocks surged after the government said it would confirm a new equity loan programme for first-time buyers in next month’s budget, reviving a policy designed at boosting home ownership and supporting home construction.
Shares of Persimmon, Barratt Redrow, Taylor Wimpey, Vistry rose between 13% and 17%.
However, broader market gains were restrained by a more than 3% jump in Brent crude prices after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict, keeping Middle East tensions in focus.
European energy shares inched 0.5% higher, although miners slumped 2% as greenback-priced metals fell on the back of a stronger dollar.
Investors’ focus will also be on speeches from European Central Bank President Christine Lagarde and Bank of England Deputy Governor Dave Ramsden later in the day, especially as markets price in further tightening by major central banks to tame inflationary pressures.
Among individual stocks, Akzo Nobel gained roughly 1% after JPMorgan reinstated coverage with an “overweight” rating.