FTSE 100 hits 1-month high on mining, housebuilders boost

Volatile commodity prices and concerns of slowing demand have hammered China-exposed miner stocks this year as the world's biggest oil and metals consumer struggles to revive its sluggish economy. Vistry Group jumped 12.9% after the British homebuilder said it will shift its entire focus onto its affordable homes business, while maintaining its annual profit outlook.

The UK's FTSE 100 index hit a one-month high on Monday, boosted by miners after positive China data signalled stability in the world's second-largest economy, while shares of homebuilder Vistry jumped after it merged its business units to focus on building affordable homes.

The blue-chip FTSE 100 index rose 0.4% by 0826 GMT, gaining for a third-consecutive session, while the mid-cap FTSE 250 index gained 0.5%. Data showed China's consumer prices returned to positive territory in August, while the country's new bank loans jumped more than expected, reflecting signs of economic stabilisation in the top metals consumer.

Industrial metal miners gained 2.8%. Volatile commodity prices and concerns of slowing demand have hammered China-exposed miner stocks this year as the world's biggest oil and metals consumer struggles to revive its sluggish economy.

Vistry Group jumped 12.9% after the British homebuilder said it will shift its entire focus onto its affordable homes business, while maintaining its annual profit outlook. The broader homebuilders index soared 3.9%, hitting a near one-month high and led sectoral gains.

"This shift to more defensive high-return business focusing on affordable housing is understandable, given consumers' concerns about super high interest rates and just how unaffordable housing has become," said Susannah Streeter, head of money and markets, Hargreaves Lansdown. "Over the medium term, with interest rates expected to not go quite as high as forecast, there's a glimmer of light for the housing sector."

AstraZeneca declined 0.9% after The Mail reported on Sunday that the drugmaker's CEO, Pascal Soriot, had privately told friends and trusted advisers that he was looking to step down. Barclays rose 0.7% after Reuters reported on Friday the lender was planning to cut hundreds of jobs, citing two sources familiar with the matter.

Meanwhile, the British public's expectations for inflation over the medium to long term, closely watched by the Bank of England, rose in August, a survey published on Friday showed.

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