Sunday 4 December 2016

Markets surge as Brexit fear fades

Reuters

Published 21/06/2016 | 02:30

A man looks at a screen displaying news of markets update inside the Bombay Stock Exchange (BSE) building in Mumbai, India. Photo: Reuters
A man looks at a screen displaying news of markets update inside the Bombay Stock Exchange (BSE) building in Mumbai, India. Photo: Reuters

Global stock markets surged yesterday as fresh polls showed waning support for Brexit in Thursday's referendum on Britain's EU membership.

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And Ireland's Overall ISEQ Index was one of the top gainers, soaring 4.55pc as investors bet that Britain will decide to remain in the trading bloc.

Britain's top share index - the FTSE-100 - ended 3pc higher with banking and house building stocks rising following the latest polls.

At the start of what could be a frenetic weak for global markets, safe-haven assets such as the yen and gold retreated.

Yesterday's surge in equity markets saw Wall Street recover losses from last week, when the chances of the UK leaving the EU appeared to be gaining momentum.

But the outcome remains too close to call.

"Waves from the Brexit vote are buffeting the UK stock market, tossing it up and down as the opinion polls shift this way and that," Laith Khalaf, senior analyst at Hargreaves Lansdown, said.

"Until the vote is over, we can expect more price swings, as markets struggle to price in a unique event that carries with it such a high degree of uncertainty."

In Ireland, the ISEQ Overall Index rose 4.55pc to 6,263.94. Shares in companies likely to benefit most from a 'remain' vote jumped the most.

Ryanair was catapulted 5.3pc higher to €13.50. Its biggest base is at London Stansted airport.

Bank of Ireland rose 4.1pc to 25 cent, while CRH surged 5.1pc to €26.70. Hotel group Dalata rose 4.8pc to €4.70, while packaging giant Smurfit Kappa was 3.9pc higher at €22.88.

The FTSE-100 was up 3pc, while Germany's DAX rose 3.4pc. France's CAC-40 was 3.5pc higher.

Irish Independent

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