European shares rise as British homebuilders surge on buyer support scheme
EWU•European shares edged up 0.3%, while British homebuilders rose 13% to 17% after the government said it would confirm an equity loan programme for first-time buyers in next month’s budget. A more than 3% jump in Brent crude and elevated bond yields limited broader gains.
1. Homebuilders rally
The pan-European STOXX 600 rose 0.3% to 640.43 points by 0725 GMT, with most major regional bourses higher. Persimmon, Barratt Redrow, Taylor Wimpey and Vistry shares gained 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.
2. Oil and miners weigh
Gains were restrained after Brent crude rose more than 3% as U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict. European energy shares gained 0.5%, while miners fell 2% as metals priced in dollars declined alongside a stronger dollar.
3. Central bank focus
Investors were also watching speeches by European Central Bank President Christine Lagarde and Bank of England Deputy Governor Dave Ramsden, as markets priced in further tightening by major central banks to curb inflation. Akzo Nobel gained roughly 1% after JPMorgan reinstated coverage with an “overweight” rating.
