Oil price rises again as Iran tensions continue
Elsewhere this morning, oil is rising again as optimism fades on possible progress in talks between the US and Iran. Brent crude, the international benchmark for oil prices, rose by as much as 3.29% this morning to $107.75 a barrel.
Iran announced a peace proposal last week at the UN General Assembly in New York, saying it had been transmitted to the US via Qatari mediators. Donald Trump said on Saturday he rejected the plan, but told Axios in a phone interview on Sunday that he expected US negotiators to engage in more talks this week
Worries around continued conflict in the Middle East – and the impact it can have on global inflation – are growing in the bond market too. US treasury yields are up, with the 10-year up 3 basis points to 5.21%. So too are UK bond yields – the 10-year gilt is up 4 basis points to 5.403% this morning.
This does not set an ideal backdrop for UK chancellor John Healey, who will be giving his speech at the Labour party conference in Liverpool at noon today.
'Christmas come early' for UK housebuilders
It is “Christmas come early” for UK housebuilders, says Anthony Codling, managing director at the broker RBC Capital Markets.
Shares in building material suppliers are also joining housebuilders in their market rally this morning – brick-maker Ibstock has jumped 21%, while Marshalls, which makes hard landscaping and building products, is up 12% this morning.
Construction material suppliers Forterra and Breedon are up 14% and 9% respectively. Topps Tiles is up 6%.
Adrian Kearsey, an analyst at the broker Panmure Liberum, notes there are still few details on how exactly the scheme will work. He wrote this morning:
He adds that the key winners are likely to be housebuilders with a lower price product, such as MJ Gleeson (which has shot up 19% this morning) and Persimmon (up 16%).
Introduction: UK housebuilder stocks soar on new homes scheme
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
UK housebuilder stocks are flying this morning as investors rejoice at a new homes scheme for first-time buyers in England.
Shares in Barratt Redrow have surged 14%, making it the best performer across the FTSE 100. Housebuilders are dominating the FTSE 250 index too, with Vistry, Persimmon, Taylor Wimpey and Bellway all up between 14% and 16% this morning.
It comes after Andy Burnham unveiled plans over the weekend for a new help-to-buy scheme.
The programme, called “Your first home”, is intended to help buyers in England who have a regular income but have been unable to save for a large deposit or don’t have financial support from their family.
Under the scheme, first-time buyers will get a 20% equity loan to help them buy a new-build home, with an initial interest free period and a requirement of a minimum deposit of just 2.5%.
There will be household income caps and a deposit cap to exclude those on the biggest salaries and with big savings pots. There will also be price caps on the value of the properties.
Richard Hunter, head of markets at the broker Interactive Investor, said the new policy would be a welcome boost for the industry.
The agenda
Today: Labour party conference day 2
7am BST: Aldi full-year results
11am BST: MPC member Dave Damsden speaks in London on quantitative tightening
