European Shares Advance, Boosted by UK Housebuilders Amid New Buyer Scheme
Market Overview and Key Drivers
European Shares and Regional Performance
Sept 28 (Reuters) - European shares edged higher on Monday, supported by a rally in British housebuilders, although gains were capped by a rebound in oil prices and elevated bond yields.
The pan-European STOXX 600 was up 0.3% at 640.43 points by 0725 GMT. Most major regional bourses also traded higher.
UK Housebuilders Surge on New Buyer Scheme
Government Policy Announcement
British housebuilders' stocks surged after the government said it would confirm a new equity loan programme for first-time buyers in next month's budget, reviving a policy designed at boosting home ownership and supporting home construction.
Stock Performance
Shares of Persimmon, Barratt Redrow, Taylor Wimpey, Vistry rose between 13% and 17%.
Other Market Influences
Oil Prices and Geopolitical Tensions
However, broader market gains were restrained by a more than 3% jump in Brent crude prices after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict, keeping Middle East tensions in focus. [O/R]
Sector Movements
Energy and Mining Stocks
European energy shares inched 0.5% higher, although miners slumped 2% as greenback-priced metals fell on the back of a stronger dollar. [MET/L]
Central Bank Focus
Investors' focus will also be on speeches from European Central Bank President Christine Lagarde and Bank of England Deputy Governor Dave Ramsden later in the day, especially as markets price in further tightening by major central banks to tame inflationary pressures.
Individual Stock Movers
Among individual stocks, Akzo Nobel gained roughly 1% after JPMorgan reinstated coverage with an "overweight" rating.
(Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Sherry Jacob-Phillips)
