(Reuters) – The UK’s FTSE 100 rose on Tuesday, with homebuilder and energy stocks leading the charge, while investors awaited a slew of economic data and a budget update due later in the week.
The blue-chip FTSE 100 was up 0.6%, while the midcap FTSE 250 index also rose 0.6% at 1037 GMT.
An index of UK housebuilders rose 1.9% after Britain’s government pledged 2 billion pounds ($2.58 billion) to build up to 18,000 social and affordable homes in England.
Homebuilders Barratt Redrow, Persimmon and Taylor Wimpey gained between 1% and 1.3%.
Bellway gained 2.4% after the company reported a 12% rise in half-year profit as the lower mortgage rates and improved consumer confidence drove sales.
Kingfisher fell 12.3%, to the bottom of the blue-chip index after the home improvement retailer reported a 7% fall in annual profit.
Energy stocks jumped 1.7% as oil prices rose for a fifth day on expectations that global supply may tighten after the U.S. announced tariffs on countries that buy Venezuelan crude.
Shell was among the top gainers on the FTSE 100 after the world’s biggest liquefied natural gas trader increased its shareholder distribution policy and lowered its spending outlook.
Investors will be closely watching UK inflation and the Personal Consumption Expenditure (PCE) data, the U.S. Federal Reserve’s preferred inflation gauge, with both sets of numbers due later in the week.
British Finance Minister Rachel Reeves will publish a forecast from the Office for Budget Responsibility on Wednesday, which is expected to roughly halve Britain’s projected growth in 2025 from 2% to about 1%, according to the Financial Times.
Markets remain focused on potential reciprocal tariffs promised by U.S. President Donald Trump and their impact on the global economy.
Among other stocks, Segro gained 3.4% after the warehouse developer announced a joint venture with Pure Data Centres Group to develop a data centre worth about 1 billion pounds.
($1 = 0.77 pounds)
(Reporting by Ragini Mathur in Bengaluru; Editing by Shounak Dasgupta)
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