FTSE 100 Rallies as Homebuilders and Energy Stocks Surge

The FTSE 100 index rose 0.6% on Tuesday, driven by gains in homebuilder and energy stocks. The rise followed Britain's pledge to support affordable housing and a rise in oil prices. Investor focus remains on forthcoming UK inflation data and a budget forecast by Finance Minister Rachel Reeves.

The UK stock market saw a boost on Tuesday as the FTSE 100 index climbed 0.6%. Homebuilder stocks led the advancement, fueled by government plans to inject £2 billion into social housing projects. Energy stocks also surged amid rising oil prices.

Several key players in the homebuilding sector experienced gains, with Bellway reporting a notable 12% increase in profits. Shell was a standout performer in the energy sector, benefiting from a revised shareholder distribution policy. Meanwhile, Kingfisher faced a 12.3% decline after announcing a fall in annual profit.

Investors are keeping a close watch on upcoming economic data and a crucial budget update from Finance Minister Rachel Reeves, amidst concerns about potential tariffs and the global economic landscape.

(With inputs from agencies.)