European Stocks Edge Higher as UK Homebuilders Rally on Loan Plan

European stocks rose Monday as UK homebuilders rallied after the government said it would confirm a first-time buyer loan program in next month's budget. The Stoxx Europe 600 was up 0.5% by mid-afternoon London time; the FTSE 100 rose 0.28% to 10,724.86 and the FTSE 250 0.72%. The household goods and home construction index surged 11.2% to a six-month high, with Barratt Redrow up 12.9% and peers and suppliers including Persimmon, Taylor Wimpey, Bellway, Vistry, Ibstock and Marshalls posting double-digit gains. Jack Fletcher-Price of Morningstar said the equity loan scheme could be the catalyst the sector has been waiting for and that lowering the deposit barrier should mean stronger demand. Gilles Guibout of BNP Paribas Asset Management said the economy is resilient, AI investments continue and stocks hedge inflation, adding a yields breaking point is not yet here. Oil rebounded more than 3% with Brent near $106 after Trump rejected Iran's plan to reopen the Strait of Hormuz; metals weakness pulled Glencore, Rio Tinto and Fresnillo lower; Entain fell 2.8% on a Brazil online betting ban warning; Rexel moved on its GCG deal news. Traders awaited central-bank comments and U.S. data.