Global equity markets surged, bonds fell and the pound sterling gained the most in eight years as the election odds for a British departure from the European Union seemed to decline as the referendum campaign was resumed on Sunday after a three day halt.
The Dow had soared over 200 points shortly after the open and the S&P 500 climbed the most in four weeks after legal betting shops in London suggested that the chances for a British exit had faded. A poll conducted over the weekend and the first since the murder of Labor MP Jo Cox showed a 45 percent to 42 percent advantage for the "Remain" camp. An average of polls conducted over the past several weeks shows a very close race.
Equities slipped from their highs as the session advanced with both averages closing on the lows and down by about half--the Dow at 17,804.87. up 129.71 points after having been at 17,946.36 and the S&P at 2,083.25, ahead by 12.03 followng a top at 2,100.66.
Sterling has jumped 4.9 percent against the dollar since touching 1.4013 on June 16th, the day that Ms Cox was killed, as traders cut their short bets on the pound. Half of that move, 2.4 precent came on Monday after the publicaton of the weekend polling. The pound closed at 1.4683.
The yield on the U.S. 10-year Treasury gained 8 basis points ending at 1.6886, its best close since June 9th. Returns on the 2 year bond jumped 5 points to 0.7451 percent.
Chief Market Strategist
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