Pound And FTSE 100 Soar On Referendum Polling

The pound has rallied strongly against the dollar and the FTSE 100 has soared in the wake of polls and betting markets suggesting Remain 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 a series of polls which put Leave in the lead.

But 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 on Monday while William Hill (Other OTC: WIMHF - news) saw an 83% chance of a win for the In-camp.

Betfair had the figure at 78% - up from as low as 60% on Friday.

The FTSE - trading at four-month lows at one stage last week - ended the day just over 3% or 180 points up in afternoon trading at 6204 with banks and house-builders among the biggest winners.

It (Other OTC: ITGL - news) followed 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.

:: How Brexit Will Affect Your Money And Savings

The DAX in Germany and French CAC were also up sharply - both up by about 3.5% by close of trading.

The pound was trading 2% up against the dollar at $1 46.8 cents - leaving sterling on course for its biggest one-day jump since March 2009.

The Euro finished the day down by 1.5p at 77.1p.

Brent crude, which had also come under pressure amid jitters about the possible economic effects of a UK exit from the EU, also recovered and was trading above $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 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".

:: 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