The FTSE 100 has opened 2.3 per cent higher and sterling could be set for its largest one-day gain since the financial crisis as investors appear to welcome a renewed tightening in EU referendum polls.
With weekend polls having pointed to momentum shifting back towards the Remain campaign ahead of the referendum this Thursday (June 23), sterling rose sharply overnight in Asian markets and the FTSE followed suit this morning.
The pound was 1.9 per cent higher against the dollar in early trading at $1.4623. If maintained, the gain would represent sterling’s largest single-day leap since 2008.
The UK’s blue-chip equity index, meanwhile, opened 2.3 per cent higher at 6,158 as polls suggested a neck-and-neck race ahead of Thursday’s vote.
Financials topped the leaderboard, the likes of Lloyds regaining some of the ground which had been lost in recent weeks as investors fretted over the possible implications of a Brexit vote.
Other sectors exposed to the domestic economy also rallied, with housebuilder Berkeley Group and online estate agent portal Rightmove, both up 4.5 per cent, among the biggest climbers in the UK market.
Renewed risk appetite was also apparent in Asian equity markets, as investors worldwide seemingly welcomed the mood shift among UK voters. Japan’s Nikkei 225, for example, closed up 2.3 per cent at 15,965.
European indices also saw healthy rebounds, with France’s CAC 40 up 2.3 per cent and Germany’s Dax rising 2.5 per cent.