European shares rise as UK homebuilder rally offsets oil, bond pressures
EWU•European shares rose 0.48% as British housebuilders surged 13.5% to 15% after the government announced a planned equity loan programme for first-time buyers. Gains were capped by a 3% rise in Brent crude and elevated bond yields.
1. European shares advance
The pan-European STOXX 600 rose 0.48% to 641.73 points on Monday, with most major regional bourses also higher. Britain’s FTSE 100 gained 0.58%.
2. Homebuilders lead gains
British housebuilders rallied after the government said it would confirm a new equity loan programme for first-time buyers in next month’s budget. Persimmon, Barratt Redrow, Taylor Wimpey and Vistry rose between 13.5% and 15%.
3. Oil and yields weigh
Brent crude rose 3% after U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict. European energy shares rose 0.6%, while miners fell 1.7% as precious metals declined; Germany’s 10-year government bond yield was 3.6303%, its highest since June 2009.
