FTSE bounce suggests investors think the UK will vote 'remain'

Exit jitters have eased ahead of Thursday's vote...

FTSE bounce suggests investors think the UK will vote 'remain'

Cathal McNaughton / PA

The pound has rallied against the dollar while the FTSE 100 soared by 2% on opening in the wake of polls suggesting 'Remain' ahead in the run-up to Thursday's Brexit vote.

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.

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

The pound was trading 1.4% up against the dollar at 1.45.6 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.

Margaret Yang, an analyst at CMC Markets 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.