Stocks, sterling surge as Brexit momentum weakens

NEW YORK - Global stock indexes jumped on Monday and sterling posted its strongest gain since 2008 after polls showed support for Britain staying in the EU strengthened before Thursday's referendum.

At the start of what could be a frenetic weak for global markets, safe-haven assets such as government bonds and gold retreated. Monday's surge in equities saw Wall Street recover losses from last week, when the chances of the United Kingdom exiting the EU, or 'Brexit,” appeared to be growing.

The surge in sterling, which rose more than 2 percent against the dollar, coincided with a broad retreat in the greenback as several polls showed the 'Leave” campaign weakening. Markets likely will remain volatile and headline-driven in the run-up to the vote, which appears too close to call.

'If I had a seatbelt while watching the markets, I'd put it on,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

Two polls showed 'In” regaining the lead and another showed the 'Out” campaign's lead narrowing, though the overall picture was of an evenly-split electorate. Bookmakers' odds have shown those wishing to stay in the EU ahead, and Betfair put the implied probability of a vote to 'Remain” at 72 percent on Monday, up from 60 to 67 percent on Friday.

'Everyone is going to hold their breath until Thursday or Friday, when we get to know the result,” said Adam Hewison, chief executive of Ino.com in Maryland.

The euro, which has suffered due to concern that the United Kingdom's departure could weaken the 28-member bloc, strengthened on Monday 0.3 percent to $1.1311, after rising as far as $1.1382.

The yen, often sought by investors in times of market tension, fell 0.2 percent to 103.89 per dollar. The dollar fell 0.6 percent against a basket of currencies.

German 10-year government debt yielded 0.059 percent, up from a record low of minus 0.037 percent on Thursday.

Oil prices, which have also been under pressure, extended Friday's gains. Brent crude topped $50 a barrel for the first time since June 14. It settled on Monday at $50.65, up $1.48 on the day.