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Frankfurt - European stocks advanced the most since February as a new poll showed an increase in the number of Britons that support staying in the European Union (EU).
The Stoxx Europe 600 Index jumped 2.7% to 334.45 at 10:03, for a second consecutive gain. All major western-European markets climbed, with the UK’s benchmark FTSE 100 Index adding 2%, while sterling surged. The volume of Stoxx 600 shares changing hands was 74% higher than the 30-day average and a measure of euro-area volatility slid 7.7%.
European shares trimmed a weekly loss on Friday as Brexit concern eased amid a suspension of campaigning following the murder of Labour Party lawmaker Jo Cox, who backed ‘Remain.’
A poll published over the weekend showed 45% of voters supported the ‘Remain’ camp, while 42% were in favour of a secession - a turnaround from early last week when surveys put the latter group ahead. Odds at betting shops suggest there’s a 31 percent chance of Britons voting to pull out of the EU, down from a record 44% before Cox’s death, Oddschecker data show.
European stocks have struggled to maintain momentum after rallying as much as 16% from a February low to an April 20 high. Polls indicating a lead for the UK’s ‘Leave’ campaign weighed on shares last week. A drop in oil prices, concerns over monetary policy after the Federal Reserve and the Bank of Japan kept policies unchanged, and Spain’s upcoming general election also damped sentiment.
Among stocks moving on corporate news today, UniCredit jumped 5.2% after Italian newspaper Il Fatto Quotidiano reported - citing unidentified financial industry sources - that the bank is likely to appoint former government minister Corrado Passera as its next chief executive officer.
Banco Bilbao Vizcaya Argentaria advanced 2.8% after reports that the Spanish lender instigated a new strategic plan in March that wasn’t announced to market.
Volkswagen rose 4.3% after a person familiar with the matter said the German carmaker will submit this month its $10bn plan to fix a half-million emissions-cheating cars or get them off US roads. Bayer added 2.5% after a report that it is in talks with investment banks about exploring strategic alternatives for its radiology supplies business, which may be worth more than $3bn.
Adidas climbed 2.4% after it was reported that the sports company signed a new four-year sponsorship contract for the German soccer team. UbiSoft Entertainment gained 4.6% after Vivendi increased its stake in the company to 20.1% and said it may continue buying shares. Vivendi rose 3.4%.
