European shares rise as British homebuilders surge on buyer support scheme

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. 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.

Shares of Persimmon, ⁠Barratt ​Redrow, Taylor Wimpey, Vistry ⁠rose between 13% and 17%. 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.

European energy shares inched 0.5% higher, although miners slumped 2% as greenback-priced ⁠metals ​fell on the back of a stronger dollar. 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.

Among individual stocks, Akzo Nobel gained roughly 1% after JPMorgan reinstated ‌coverage with ‌an "overweight" rating.