UK shares mixed as pressure from miners, yields offsets homebuilder rally 

By Reuters News

By Anand Gopal R and Avinash P

Sept 28 (Reuters) - London's FTSE 100 inched lower on Monday as weaker metal prices and rising bond yields kept risk appetite in check, while a rally in homebuilders, after the British government announced an incentive scheme for first-time homebuyers, lifted the FTSE 250.

The blue-chip FTSE 100 index .FTSE closed 0.10% lower to 10,684.88 points, while the midcap FTSE 250 .FTMC climbed 0.31%.

  • The precious metals sector .FTNMX551030 declined 4.9%, while industrial miners .FTNMX551020 dropped 1.2% on lower gold and copper prices. GOL/ MET/L

  • Gold miners Fresnillo and Endeavour Mining EDV.L dropped 5.1% and 4.4%, respectively, while copper miners Glencore GLEN.L shed 1.7% and Anglo American AAL.L slid 1.9%.

  • Oil prices climbed more than 3% after the US rejected an Iran peace plan, reinforcing inflation fears and higher interest rates worldwide.

  • Reflecting those concerns, the yield on the British 10-year government bond rose to its highest since July 2007. GB/

  • Separately, Bank of England Deputy Governor Dave Ramsden said persistently high inflation was having an impact on his thinking about interest rates.

  • Traders are expecting at least one quarter-point rate hike by the BoE this year, according to data compiled by LSEG.

  • The household goods & home construction index .FTNMX402020 surged 10% to a six-month high helping limit losses on the FTSE 100, after the government confirmed plans to include a loan programme in next month's budget to boost home sales.

  • “The UK government's new equity loan scheme could be the catalyst the UK homebuilding sector has been waiting for. While the finer details will matter, anything that lowers the deposit barrier for first-time buyers should translate into stronger demand", Jack Fletcher-Price, equity analyst at Morningstar, said.

  • Barratt Redrow BTRW.L jumped 11.7%, while Persimmon PSN.L, Taylor Wimpey TW.L and Bellway BWY.L added between 15% and 10%, boosting the domestically focused FTSE 250.

  • Ladbrokes owner Entain ENT.L slid 5% after warning Brazil's ban on online sports betting and gaming would hurt its 2026 online gaming revenue growth.

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