FX.co ★ FTSE 100 Rises Led by Homebuilders

The FTSE 100 advanced on Monday, extending modest gains from the previous session, as UK housebuilders rallied on renewed expectations for the revival of the Help to Buy scheme. Barratt Redrow surged nearly 15%, Howden Joinery climbed 5.1%, and Kingfisher gained 4.2%.

Chancellor John Healey is scheduled to address the Labour Party conference ahead of next month’s budget, with the proposed reboot of Help to Buy set to include loan guarantees to support first-time buyers of new-build homes.

Sentiment was partly capped after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, unwinding some of the optimism that had buoyed markets late last week. Oil prices rose in response, lifting Shell and BP by around 1% each.

Mining stocks broadly declined, with Fresnillo, Endeavour, Antofagasta, Anglo American, Glencore and Rio Tinto down between 1.8% and 5.5%. Entain slipped more than 2%, despite reiterating its guidance.