European shares rise as British homebuilders surge on buyer support scheme

According to Business Recorder, the pan-European STOXX 600 index stood 0.3% higher at 640.43 points by 0725 GMT on Monday, with most major regional exchanges also trading in positive territory. The main driver was a surge in British homebuilder stocks, which climbed between 13% and 17% after the government signalled it will formally approve a fresh equity loan scheme aimed at first-time buyers when the budget is presented next month. Persimmon, Barratt Redrow, Taylor Wimpey and Vistry were among the names gaining.

Gains were held back, however, by a rise of more than 3% in Brent crude after US President Donald Trump turned down an Iranian plan to reopen the Strait of Hormuz and bring the conflict to an end. European energy stocks edged up 0.5%, while mining shares fell 2% as metals priced in dollars declined amid a firmer greenback. Elevated bond yields also weighed on sentiment.

Market attention will turn to remarks from European Central Bank President Christine Lagarde and Bank of England Deputy Governor Dave Ramsden later in the day, as traders factor in more monetary tightening from leading central banks to contain inflation. Separately, Akzo Nobel gained roughly 1% after JPMorgan restored its coverage with an overweight rating.