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Financial markets are breathing a sigh of relief on Monday, rallying sharply worldwide after the latest Brexit polls are indicating that tables have turned, and the UK is learning towards remaining in the European Union. Monday’s cheerful mood came after fresh Brexit polls over the weekend showed how the murder of British politician Jo Cox – a strong “remain” supporter – has provided a boost for the pro-EU side.
This news was enough to set European markets on course for its best performance in nearly ten months, as the pound strengthened the most since 2009. Banking shares also pushed European shares higher, as did energy companies, as oil prices soared.
All major indexes were trading firmly in the green. France’s CAC 40 jumped the most during Monday’s session, after climbing 3.56%. Germany’s DAX and the UK FTSE 100 were up also trading sharply higher, after rising 3.44% and 3.02% respectively.
All sectors were higher, with bank shares leading the way. Royal bank of Scotland surged 6.93% and Lloyds Banking Group picked up 7.63% following early signs that Britain will vote to stay in the EUR. Deutsche bank was up 5.42% and Barclays advanced 7.74%.
US stocks also opened sharply higher on Monday, following the lead of European and Asian markets, on a swing in support for the UK remaining a member of the European Union. This sense of relief caused the British Pound to rise to $1.4618 from $1.4358, making it the largest one day gain since 2009.
Shares of oil producers followed rising oil prices higher. Crude oil rose 2.7% and was trading just under $50 a barrel. The news was music to the ears of energy companies and led to Chesapeake shares soar 5.21%.
Shares on The Walt Disney Co were in focus on Monday after its Pixar Animation Studio set a box-office weekend record with the debut of ‘Finding Dory’ this weekend. Shares were up 1.3% after its latest animated film took an estimate $136.2 million in its US and Canadian debuts.
Twitter was also trading higher, after the company agreed to acquire a London-based artificial intelligence start up to make tweeted live videos look more professional. Seeking to shore up its slowing growth, the social media company has in recent months began emphasizing video on its site. Twitter paid around $150 million for Magic Pony in the hopes of being able to benefit from the company’s artificial intelligence for visual effects. Twitter’s shares climbed 2.8% on Monday, to $16.55.
Volkswagen shares were also having a good day. The German car maker rose 4.6% on the news that it has moved closed to submitting a $10 billion plan in the wake of its emission-cheating scandal. Elsewhere, Bayer AG shares gained 3% after Reuters reported the German drug maker is looking into selling its radiology supplies business, which could be worth more than $3 billion.
Despite this early-in-the-week rise, markets are still in a relatively precarious position and any indication that the public is shifting in favour to leave can see Monday’s gains rapidly dissipate. The UK will hold its in-or-out referendum on Thursday to decide whether Britain will exit the EU.
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