European shares rise as British homebuilders surge on buyer support scheme
VGK•European shares rose 0.3% on Monday, while British homebuilder stocks climbed 13% to 17% after the government said it would confirm a new equity loan programme for first-time buyers in next month’s budget.
1. Shares edge higher
The pan-European STOXX 600 was up 0.3% at 640.43 points by 0725 GMT, with most major regional bourses also higher. Gains were restrained by a more than 3% jump in Brent crude and elevated bond yields.
2. Homebuilders rally
Persimmon, Barratt Redrow, Taylor Wimpey and Vistry rose between 13% and 17% after the government said it would confirm a new equity loan programme for first-time buyers in next month’s budget. The programme is designed to boost home ownership and support home construction.
3. Other market factors
European energy shares rose 0.5%, while miners fell 2% as greenback-priced metals declined alongside a stronger dollar. Investors were also focused on speeches from European Central Bank President Christine Lagarde and Bank of England Deputy Governor Dave Ramsden, as markets priced in further tightening by major central banks.
