UK markets opened higher on Monday morning, with housebuilders surging across the FTSE 100 and FTSE 250 after the government unveiled a new scheme to support first-time buyers, while miners slid as gold and silver prices tumbled.
The FTSE 100 is up 0.3% in early trading, with the FTSE 250 gaining 0.4%. European peers are more subdued, with the DAX up 0.1%, the CAC 40 adding 0.3% and the Euro Stoxx 50 climbing 0.1%.
Housebuilders lead the FTSE 100
Barratt Redrow is the standout FTSE 100 riser so far, up 14.4% following the UK government housing move, as well as a transaction in own shares announcement.
Meanwhile, Howden Joinery Group has climbed 5.0% and Kingfisher has gained 3.8%, both tracking the broader housebuilding rally.
That rally was even sharper further down the market. On the FTSE 250, Persimmon jumped 15.5%, Vistry Group rose 15.2%, Taylor Wimpey gained 14.9% and Bellway added 14.5%, with Bellway also citing a transaction in own shares.
The moves follow a new government scheme aimed at boosting new homes and supporting first-time buyers.
Miners under pressure as metals slide
It is a rougher session so far for miners. Fresnillo leads the FTSE 100 fallers, down 5.6%, with Endeavour Mining off 4.7% and Antofagasta down 3.3%. Anglo American, Glencore and Rio Tinto each fell between 1.9% and 2.8%.
On the FTSE 250, Hochschild Mining dropped 6.9%, Pan African Resources fell 5.0% and Ceres Power Holdings slipped 4.7%.
The declines track a sharp pullback in precious metals, with spot gold falling 3% to $4,157, while spot silver has dropped 5.1% to $61.04.
Oil firms on Iran tensions
Oil prices pushed higher, with Brent crude up 1.8% at $99.18 and WTI up 2% at $94.23, as markets weighed renewed US-Iran tensions.
Analysts told CNBC that oil markets are “pricing in a clear and present” risk of renewed hostilities after the US midterms, while reports from the region pointed to continued uncertainty over potential strikes near the Strait of Hormuz.
In currencies, sterling is little changed, with GBP/USD up 0.1% at 1.3257.
Other News
In other news, it was reported over the weekend that Monzo is weighing a possible sale to Brazil’s Nubank, while private equity firm Advent International has separately explored buying a minority stake.
This morning, Entain held its full-year profit guidance despite Brazil’s sudden ban on online betting. However, the company said the target is now expected to land at the bottom of its range.