European shares gained on Monday as investors looked past rising bond yields and a renewed surge in oil prices, with UK homebuilders jumping after the government announced a new loan program to help first-time buyers. The Stoxx Europe 600 Index rose 0.3% as of 8:27 a.m. in London. UK homebuilders Taylor Wimpey Plc, Bellway Plc, Persimmon Plc and Barratt Redrow Plc all climbed more than 10%, with JPMorgan analysts describing the loan plan as a potential “game changer” for the sector. Retailers, grocery stores and consumer products also advanced, while miners fell as precious-metal prices slumped. European stocks are on track to snap a five-month winning streak in September after a global bond selloff intensified as surging energy prices fuel inflation concerns and bets on further interest-rate hikes. Brent crude topped $107 a barrel on Monday after President Donald Trump rejected Iran’s latest cease-fire proposal.

"A lot is moving against equities at the moment: oil is on the rise and bond yields going through the roof," said Alphavalue deputy CEO Laurent Lamagnere. "With 5.2% on Treasuries, there’s a clear alternative to stocks; same thing in Europe, with the Bund yielding well above the dividend yield of the Stoxx 600."

Among other individual stocks, Rexel SA shares rose 2.1% after the French company announced a deal to buy specialty wire and cable provider GCG for an enterprise value of about $1.4 billion.