- Homebuilders index jumps after Britain's 10 billion-pound affordable housing plan
- Vistry surges 15.6% after securing 350 million pounds for more than 3,000 homes
- FTSE 100 rises 0.2%, FTSE 250 gains 0.6%
Aug 25 (Reuters) - The main UK stock indexes climbed on Tuesday, as housebuilders were lifted by the British government's plans to spend £10 billion on lower-cost housing, while investors awaited key events later in the week.
The blue-chip FTSE 100 index rose 0.2% to 10,880.17 points by 1114 GMT, while the midcap FTSE 250 climbed 0.6% to 24,866.99 points.
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Britain set out plans to spend £10 billion ($13.6 billion) on lower-cost housing for renters, with a focus on London. Around 60% of homes delivered through the funding would be for social rent, a subsidised cheaper form of rent that can be built by local councils or housing associations.
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The homebuilders index rose 1.9% after the announcement. Vistry <VTYV.L> jumped 15.6%, leading gains in the midcap index, after it received initial funding of £350 million ($477.19 million) to deliver over 3,000 affordable homes as part of the plan.
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Meanwhile, shares of energy majors BP and Shell dipped as oil prices fell more than 3%, with traders shrugging off the latest U.S. sanctions campaign against Iran, viewing the economic pressure as posing less risk to oil supplies than a military escalation.
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Iran pledged to fight back against expanded U.S. sanctions aimed at isolating its economy.
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Gold miners Fresnillo and Endeavour Mining fell about 1% after gold prices pulled back from recent highs as investor focus shifted to the upcoming U.S. inflation data as well as a speech later this week by Federal Reserve Chair Kevin Warsh at the Jackson Hole summit.
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Investors are also closely watching chipmaker Nvidia's earnings due Wednesday, viewed as a major test of the AI rally, amid concerns about whether the chipmaker can meet Wall Street's lofty expectations.
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Shares of Melrose Industries rose 9.7% after the GKN Aerospace owner said it was targeting September 28 to resume full production at its Garden Grove facility and pay up to $100 million to settle damage claims from a May incident involving an overheating chemical tank.
£1 = $1.36
Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Tasim Zahid
Source: Reuters