European shares muted as oil and bond pressures offset UK homebuilder rally
SPY•European shares closed flat at 638.68 as higher oil prices and elevated bond yields offset a rally in UK homebuilders. Persimmon, Barratt Redrow, Taylor Wimpey and Vistry gained 10.4% to 14.7% after the government announced a new equity-loan programme for first-time buyers.
1. Homebuilders surge
UK housebuilders rallied after the government said it would confirm a new equity-loan programme for first-time buyers in next month’s budget. The plan would cut the required deposit to 2.5% from 5%, research director Kathleen Brooks said. Persimmon, Barratt Redrow, Taylor Wimpey and Vistry rose between 10.4% and 14.7%, while the FTSE 100 slipped 0.1%.
2. Oil and yields weigh
The pan-European STOXX 600 ended flat at 638.68 as Brent crude rose 2% and bond yields remained elevated. Germany’s 10-year government bond yield was last at 3.643%, its highest level since June 2009. Energy stocks gained 0.8%, while miners fell 1.2% as gold and copper prices declined.
3. Company movers
Danieli fell 15.4% after missing annual earnings estimates. Trevi rose 3% to a six-month high after construction peer ICOP raised its all-share takeover bid.
