FTSE 100 Soars By 2% On Latest Brexit Polls

The pound has rallied against the dollar while the FTSE 100 soared by 2% on opening in the wake of polls suggesting Remain is ahead in the run-up to the EU referendum.

The UK's blue chip index, like its counterparts worldwide, has endured wild recent volatility - with investors spooked last week by polls putting Leave in the lead.

The latest surveys, including a Survation poll for The Mail On Sunday which had Remain back in the lead and three points ahead, fuelled further appetite for risk across Asia on Monday following a partial recovery in values on Friday.

The FTSE gained 1.2% in that session and rose over 100 points when trading began on Monday on the back of gains in Asia that saw the Nikkei in Japan close 2.3% higher - aided by a weakening of the yen which had risen last week in a rush for safe havens, damaging the stock values of exporters.

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London bank stocks were the biggest winners on the FTSE after bearing the brunt of the nerves last week - with RBS (LSE: RBS.L - news) , Barclays (LSE: BARC.L - news) and Lloyds shares all up more than 5%.

The DAX in Germany and French CAC were also up sharply - by 2.5% in early deals.

The pound was trading 1.6% up against the dollar at 1.46 while Brent crude, which had also come under pressure amid jitters about the possible economic effects of a UK exit from the EU, also neared $50 a barrel again.

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Margaret Yang, an analyst at CMC Markets (LSE: CMCX.L - news) in Singapore, said: "The entire market is now focused on the UK's EU referendum result.

"Judging by the market reaction over the last two days, more volatility is likely this week.

"It (Other OTC: ITGL - news) is expected that a vote to remain would lead to a quick unwinding of risk premium and a substantial risk-on rally, whereas a Brexit vote would have the opposite effect," she said.

Investors are feeling more bullish after the first opinion polls since the killing of Labour MP Jo Cox prompted a two-day suspension in campaigning.

Kathleen Brooks, research director at Gain Capital (NYSE: GCAP - news) , said: "The pound has gapped higher at the start of this week's trading session after the latest EU referendum opinion poll suggested a loss of support for the Leave camp.

"The pause in the campaign seems to have lent crucial support to team Remain, with only four days to go until the vote.

"The markets have always been more comfortable with the UK remaining in the European Union".

:: EU In Or Out Jeremy Corbyn Live on Sky News at 6pm tonight

:: Time To Decide: A special programme on the eve of the EU referendum with Dermot Murnaghan on Wednesday from 10pm

:: In Or Out: Get all the results and reaction from the EU referendum from 9.30pm on Thursday