European shares opened higher on Monday, with the STOXX 50 and STOXX 600 both gaining around 0.3% as markets absorbed further moves in oil prices and developments around the Strait of Hormuz. The rise came despite renewed concerns over inflation and interest rates as higher energy prices continued to put pressure on markets.
UK housebuilders were among the strongest performers, following confirmation that the government plans to introduce a new equity loan programme for first-time buyers in next month’s Budget. The announcement prompted a sharp move across the sector, with Taylor Wimpey among the STOXX 600’s strongest performers, rising more than 14%.
The proposed support for first-time buyers provides a fresh factor for UK housebuilders, which have been operating against a backdrop of affordability pressures and higher borrowing costs. The equity loan programme is expected to provide additional support for buyers of new-build properties, with further details due when the Budget is announced.
The market reaction extended beyond housebuilders, with companies linked to construction also benefiting from expectations that greater support for new-build purchases could improve demand.
The broader European market was also supported by gains in several major sectors. Luxury stocks moved higher, with LVMH and Hermes both advancing. L’Oreal and EssilorLuxottica also recorded gains, while energy companies benefited from higher oil prices. Shell, BP and TotalEnergies all moved higher during early trading.
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