(Sept 28): European shares rose on Monday as investors looked past higher bond yields, with UK homebuilders jumping after the government announced a new loan programme to help first-time buyers.

The Stoxx Europe 600 Index rose 0.5% as of 2.17pm in London (9.17pm in Malaysia). UK homebuilders Taylor Wimpey plc, Bellway plc, Persimmon plc and Barratt Redrow plc all climbed more than 10%, with analysts at JPMorgan Chase & Co describing the loan plan as a potential “game changer” for the sector.

Oil majors also gained as Brent crude traded around US$106 a barrel after US President Donald Trump rejected Iran’s latest ceasefire proposal. The mining index slumped 1.4% as gold and other precious metals sank.

European stocks are on track to snap a five-month winning streak in September after a global bond selloff intensified as surging energy prices fuel inflation concerns and bets on further interest-rate hikes.

“The big picture is that the economy is resilient, that AI investments are ongoing and that stocks provide a powerful hedge against inflation,” said Gilles Guibout, head of equities at BNP Paribas Asset Management. “There could probably be a breaking point, a moment when the rise in yields starts hurting the economy, but we are not there yet.”

Among other individual stocks, Rexel SA dropped 1.4% after the French company announced a deal to buy specialty wire and cable provider GCG for an enterprise value of about US$1.4 billion (RM5.72 billion).

Uploaded by Arion Yeow