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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jun/20/pound-shares-markets-eu-referendum-brexit-fears-business-live
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| Version 0 | Version 1 |
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| Pound and shares soar as Brexit fears ease – business live | Pound and shares soar as Brexit fears ease – business live |
| (35 minutes later) | |
| 8.10am BST | |
| 08:10 | |
| FTSE 100 jumps by 2% | |
| Britain’s FTSE 100 index has surged by 136 points at the start of trading, as City investors react to the polls showing the Remain campaign gaining ground. | |
| Almost every share is gaining ground, as money pours back into shares, pushing the benchmark index up by over 2%. | |
| Royal Bank of Scotland, the taxpayer-owned bank, is leading the rally with a 6% surge. Lloyds Banking Group are up 5%. | |
| And housebuilders are also leading the charge – they had suffered from fears that Brexit would mean less demand for housing, especially if the UK entered recession. | |
| Mike van Dulken, analyst at Accendo Markets, explains: | |
| A positive European open comes as weekend Brexit polls (and bookies’ odds) suggest the Remain campaign regaining some lost ground and in some cases re-taken the lead ahead of Thursday’s UK referendum vote on EU membership. | |
| A higher chance of the UK voting to stay is a relief for markets (equities and the pound sterling) that had been preparing themselves for a Leave vote and the uncertainty it could inflict from both a financial, economic and political standpoint. | |
| In Europe, the French and German stock markets both leapt by around 2.4% at the open. | |
| Updated | |
| at 8.10am BST | |
| 8.01am BST | |
| 08:01 | |
| And we’re off! European stock markets are opening sharply higher, with financial stocks leading the way...... | |
| 8.00am BST | |
| 08:00 | |
| Today’s newspaper front pages show how the EU referendum campaign picked up last night: | |
| Monday's Guardian:I need to make better EU case, says Cameron#tomorrowspaperstoday #bbcpapers #EUref pic.twitter.com/n39YvAhO92 | |
| Revised Times front page:Brexit camp divided as senior Tory walks out#tomorrowspaperstoday #bbcpapers pic.twitter.com/LyoYwZpMO2 | |
| Monday's Telegraph front page -Boris: Vote Leave, change history#tomorrowspaperstoday #bbcpapers #EUref pic.twitter.com/oMyQHOkQEg | |
| 7.55am BST | |
| 07:55 | |
| Pound jumps after "swing back to status quo" | |
| Sterling is rallying hard this morning - another sign that Brexit worries are easing. | |
| The pound has jumped more than two cents, or 1.5%, to $1.4572, after weekend opinion polls showed the Remain campaign picking up more support. | |
| That’s its highest level since June 7, before opinion polls showed the Leave campaign in the ascendant. | |
| Against the euro, the pound has gained 1% or 1.2 eurocents to €1.2848. That means one euro is worth 77.8p. | |
| Analysts at RBC Capital Markets say investors are reacting to the latest opinion polls: | |
| In the UK, there were three surveys released over the weekend that all showed some swing back towards ‘Remain’. The Survation poll showed a 45/42 lead for ‘Remain’ (up from 42/45 previously), a YouGov Poll showed a 44/42 lead (42/44 previously) while Opinium stood at 44/44 equal split. | |
| Those polls were all conducted around the tragic events of last week - with some responses coming in before and some after the murder of Jo Cox. | |
| Thus, it might be possible that the events influenced the polls but most experts commented that it is more likely that an expected and well documented ‘pull to the status-quo’ is responsible for the latest swing. The poll-of-polls averaging the last six polls has returned to 50/50 while the bookmakers’ odds for Brexit have fallen considerably to around 30% again. | |
| GBP outperforms in FX markets after the latest batch of polls show a lead for the ‘remain’ camp ahead of Thursday’s referendum | |
| 7.43am BST | 7.43am BST |
| 07:43 | 07:43 |
| How the polls have shifted | How the polls have shifted |
| Claire Phipps | Claire Phipps |
| Here’s a round-up of the latest referendum opinion polls (from our EU referendum liveblog): | Here’s a round-up of the latest referendum opinion polls (from our EU referendum liveblog): |
| The FT poll of polls now pegs remain and leave on 44% apiece. | The FT poll of polls now pegs remain and leave on 44% apiece. |
| 7.41am BST | 7.41am BST |
| 07:41 | 07:41 |
| Shares surge in Asia | Shares surge in Asia |
| Stock markets across Asia have soared today, as investors grew more confident that the British public will vote to remain in the EU. | Stock markets across Asia have soared today, as investors grew more confident that the British public will vote to remain in the EU. |
| Japan’s Nikkei 225 index led the way, gaining almost 2.3% today. | Japan’s Nikkei 225 index led the way, gaining almost 2.3% today. |
| The Nikkei is often a good barometer of investor sentiment -- liable to tumble when nervous traders drive up the value of the Japanese Yen (hurting the country’s exporters and raising deflation fears). | The Nikkei is often a good barometer of investor sentiment -- liable to tumble when nervous traders drive up the value of the Japanese Yen (hurting the country’s exporters and raising deflation fears). |
| The Hong Kong Hang Seng index is close behind, up 1.8%, as is Australia’s S&P/ASX 200 index. | The Hong Kong Hang Seng index is close behind, up 1.8%, as is Australia’s S&P/ASX 200 index. |
| Risk-on start to a high-risk week: #Japan's Nikkei ends up 2.3% at 15965.30 while safe haven Yen weakens vs Dollar. pic.twitter.com/35c3LaCXa0 | Risk-on start to a high-risk week: #Japan's Nikkei ends up 2.3% at 15965.30 while safe haven Yen weakens vs Dollar. pic.twitter.com/35c3LaCXa0 |
| Although these trading floors are thousands of miles from the UK, Britain’s referendum is still top of the agenda. | Although these trading floors are thousands of miles from the UK, Britain’s referendum is still top of the agenda. |
| Margaret Yang, an analyst at CMC Markets in Singapore, explains: | Margaret Yang, an analyst at CMC Markets in Singapore, explains: |
| The entire market is now focused on the UK’s EU referendum result.... | The entire market is now focused on the UK’s EU referendum result.... |
| 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.” | 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.” |
| 7.28am BST | 7.28am BST |
| 07:28 | 07:28 |
| The agenda: Markets eye EU referendum | The agenda: Markets eye EU referendum |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| It’s a crucial week for investors around the globe, as the long-running UK referendum campaign enters its final days. | It’s a crucial week for investors around the globe, as the long-running UK referendum campaign enters its final days. |
| And London’s financial markets are expected to soar, following weekend polling showing that the campaign to Remain in the European Union is making up ground. | And London’s financial markets are expected to soar, following weekend polling showing that the campaign to Remain in the European Union is making up ground. |
| Asian stock markets have rallied strongly overnight, and it looks like Europe will follow suit at 8am. | Asian stock markets have rallied strongly overnight, and it looks like Europe will follow suit at 8am. |
| IG are predicting that the FTSE 100 will soar by nearly 3% at the open – a really big move - as fears of a Brexit ease. The pound is also rallying in early trading, hitting a two week high (more on that shortly) | IG are predicting that the FTSE 100 will soar by nearly 3% at the open – a really big move - as fears of a Brexit ease. The pound is also rallying in early trading, hitting a two week high (more on that shortly) |
| Our European opening calls:$FTSE 6182 up 161$DAX 9855 up 224$CAC 4297 up 103$IBEX 8574 up 212$MIB 17190 up 267 | Our European opening calls:$FTSE 6182 up 161$DAX 9855 up 224$CAC 4297 up 103$IBEX 8574 up 212$MIB 17190 up 267 |
| This may be premature...... there are still three days to go until the vote. Campaigning resumed last night, following a two-day break following the awful, tragic death of Jo Cox MP on Thursday. | This may be premature...... there are still three days to go until the vote. Campaigning resumed last night, following a two-day break following the awful, tragic death of Jo Cox MP on Thursday. |
| Our main EU referendum blog will be tracking all the key political developments in the referendum today, including tributes to Jo Cox and her work in parliament: | Our main EU referendum blog will be tracking all the key political developments in the referendum today, including tributes to Jo Cox and her work in parliament: |
| Related: EU referendum live: Warsi swaps sides over 'nudge-nudge xenophobia' | Related: EU referendum live: Warsi swaps sides over 'nudge-nudge xenophobia' |
| There’s not much else in the economic or financial calendar, so the City should be free to watch the referendum campaign enter its final lap. | There’s not much else in the economic or financial calendar, so the City should be free to watch the referendum campaign enter its final lap. |
| Weekend Brexit polls suggesting we're back to neck-n-neck and #FTSE100 is back to middle of May 6050-6300 range pic.twitter.com/2Tu7iIE4rY | Weekend Brexit polls suggesting we're back to neck-n-neck and #FTSE100 is back to middle of May 6050-6300 range pic.twitter.com/2Tu7iIE4rY |
| We’ll be tracking all the main economic and financial news through the day.... | We’ll be tracking all the main economic and financial news through the day.... |
| Updated | Updated |
| at 7.43am BST | at 7.43am BST |