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FTSE rallies as EU membership ‘Remain’ camp makes a comeback

FTSE

UK shares paced by banks and housebuilding rose on Monday, boosted by polls suggesting the campaign for Britain to remain in the European Union was regaining a narrow edge over the “Out” camp.

Britain’s blue chip FTSE 100 index .FTSE rose 2 per cent to 6,138.78 points by 0909 BST, extending Friday’s 1.2 per cent gain.

Two opinion polls published on Saturday showed that the campaign to keep Britain in the European Union ahead of its June 23 referendum had regained its lead, while a third poll also showed momentum for an “In” vote.

However, the overall scenario remains evenly split.

“The risk-off mood of last week which was fading on Friday has turned decisively this morning and … this (could) extend into the rest of the week provided that the polls continue to point towards ‘Remain’,” Chris Beauchamp, senior market analyst at IG, said.

Shares in domestically-focused companies, seen as sensitive to the outcome of Britain’s June 23 referendum on its EU membership, rallied, with banks Royal Bank of Scotland (RBS.L), Lloyds (LLOY.L) and Barclays (BARC.L) all jumping between 4.6 per cent and 6.8 per cent.

Paul

The author Paul