European shares have positive day as Brexit camp loses ground

Top European shares indexes posted their biggest rallies since August yesterday, led by heavyweight banking stocks, as weekend opinion polls boosted expectations that Britain would vote to stay in the European Union.

The pan-European Stoxx 600 and FTSEurofirst 300 indexes both rose 3.7 per cent, the biggest one day gain for each index for 10 months.

Markets recovered from three straight weeks of falls, as recent momentum for the campaign to leave the EU showed signs of waning, sending sterling towards its biggest one-day gain in seven years. DUBLIN The Iseq closed up 4.5 per cent or 2.72.43 points higher to 6,263.94.

Bank of Ireland continued to bounce back following Friday's rally after what had been a tough week for the stock. It closed up 4 per cent yesterday to 25 cent.

Paddy Power was another big riser, gaining 7 per cent to end at €116.95. Ryanair, meanwhile, jumped 5 per cent to €13.52.

Other big movers included Kerry, up 3.5 per cent to €79.50, Irish Continental, up 4.5 per cent to €5.32, Origin, up 2 per cent to €6.17, and Iseq heavyweight CRH, which gained 5 per cent to close at €26.70. LONDON Britain's top share index ended sharply higher yesterday, with banking and housebuilding stocks surging. The blue-chip FTSE 100 index finished 3 per cent higher, the biggest one- day percentage gain since mid- February, at 6,204.00 points, after earlier rising to 6,236.53, the highest level since June 9th.

Shares in domestically-focused companies, seen as sensitive to the outcome of the Brexit vote, rallied, with banks Royal Bank of Scotland, Lloyds and Barclays all jumping between 6.7 per cent to 7.6 per cent. Housebuilders Taylor Wimpey, Barratt Developments, Berkeley Group and Persimmon gained between 5.9 per cent to 6.8 per cent.

However, precious metals miners Rangold Resources and Fresnillo underperformed the broader market, down 1.4 per cent and 0.2 per cent respectively as investors dumped perceived safe-haven assets and the price of gold fell. EUROPE European stocks climbed, paring a third weekly decline, and energy shares followed oil higher. The Stoxx Europe 600 Index rose 1.4 per cent at the close of trading.

Volkswagen jumped 5 per cent after news emerged that the carmaker will submit this month its $10 billion plan to fix a half-million emissions-cheating cars or get them off US roads.

Bayer added 2.7 per cent 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 $3 billion.

Adidas climbed 3.8 per cent after it was reported that the sports company signed a new four-year sponsorship contract for the German soccer team.

UbiSoft Entertainment gained 8.1 per cent after Vivendi increased its stake in the company to 20.1 per cent and said it may continue buying shares. Vivendi rose 3.1 per cent. WALL STREET US stocks surged in early trading, with the S&P 500 Index jumping the most in four weeks. The rebound in equities was led by consumer discretionary shares, on track for the best day in more than three months amid gains of 1.6 per cent in Amazon. com and Priceline.

Car-parts makers were among the biggest gainers with Delphi Automotive and BorgWarner climbing more than 4.3 per cent, the best for both since April 13th. Federal-Mogul jumped 6.7 per cent after Carl Icahn raised his bid for the remaining 18 per cent of the parts maker.

Travel-related companies surged, with Expedia and TripAdvisor joining Priceline with increases of more than 3.3 per cent. Royal Caribbean Cruises and Carnival added at least 2 per cent. – (Additional reporting: agencies)