The FTSE 100 index rose 0.5% to 7,559.37, outperforming a 0.3% rise for the Stoxx Europe 600 index
U.K. stocks advanced Monday, led by banks and mining companies, while building names also gained amid more indications of housing market strength.
The FTSE 100 index rose 0.5% to 7,559.37, outperforming a 0.3% rise for the Stoxx Europe 600 index. The pound was down modesty after jumping 1.3% so far in the month, and following last week’s interest rate hike by the Bank of England.
Housing stocks were in focus after Halifax reported its monthly house price index rose just 0.3%, the weakest rise since June 2021. The annual rate of growth was steady at 9.7% and average prices rose to a record high of £276,759 ($374,227).
Rightmove’s data also indicated new buyer inquiries were up 15% and the average stock of homes listed for sale just 12 per estate agent branch, a record low. Buoyant mortgage approvals also point to an exceptionally tight housing market, said Davy Research analyst Conall MacCoille, in a note to clients.
In that sector, shares of Rightmove gained 1%, Persimmon added 0.6%, and Barratt Developments shares were up 0.5%.
London stocks were also boosted by bank names, with heavily weighted HSBC up 1.2%, Barclays and Standard Chartered stock each added 0.8%.
Mining stocks were also on the rise, with shares of Rio Tinto up 1.2%, Glencore gaining 1% and Anglo American up 1.8%.
On the downside, shares of Russian steel and mining group Evraz dropped more than 5% , while medical products maker Smith & Nephew shed 3%.
In commodities trading, Gold Futures for April delivery was up 0.73% or 13.15 to $1820.95 a troy ounce.
Meanwhile, Crude oil for delivery in March dropped 1.42% or 1.31 to hit $91.00 a barrel, while the April Brent oil contract lost 0.76% or 0.71 to trade at $92.56 a barrel.
