By IFCMarkets

US stocks advanced on Monday as weekend polls showed rising support for the UK remaining a member of the European Union ahead of its Thursday referendum. The dollar weakened with Pound gaining 2% and yen and euro also tracking higher: the live dollar index data indicate the ICE US Dollar Index, a measure of the dollar’s value against a basket of six major currencies, slipped 0.6% to 93.615. The Dow Jones industrial average ended 0.7% higher at 17804.87 led by a rally in Goldman Sachs, Boeing and 3M shares. TheS&P 500 closed 0.6% higher at 2083.25 led by energy stocks with utilities the only sector closing in negative territory, down 0.3%. materials and tech stocks leading the decliners. The Nasdaq Composite Index rose 0.8%. Treasury yields also rose as investors sold safe US government bonds with fears over Brexit uncertainty subsiding. There are still five more polls before the referendum and market sentiment will likely follow any shift in public poll results. Today at 16:00 CET Fed Chair Janet Yellen testifies to the US Congress. No important economic data are expected today in US.

European stocks rallied on Monday recording the best daily gain in nearly ten months as weekend polls indicated a narrow lead in support for the UK remaining a member of the EU. The euro strengthened and the Stoxx Europe 600 rose 3.7%. Bank shares led the rally with Banco Comercial Portugues jumping 12% and Deutsche Bank gaining 5.9%. Volkswagen shares added 5.1% with the German car maker preparing to submit a $10 billion plan in the wake of the emission-cheating scandal. The German DAX 30 index tacked 3.4% settling at 9962.02. France’s CAC 40 jumped 3.5% and UK’s FTSE 100 index gained 3%. In other economic news German producer prices increased by 0.4% in May from April, but were down 2.7% from May 2015. Today at 10:30 CET May Public Sector Net Borrowing will be released in UK. The tentative outlook is negative for Pound. At 11:00 CET today June ZEW survey results will be published in euro-zone. The tentative outlook is negative for euro.

Asian stocks are advancing today with fears about possible British exit from EU abating after weekend polls showed British voters are leaning toward remaining in the EU. Nikkei rose 1.3% to 16169.11 in thin choppy trade today with weaker yen supporting exporters.

Oil futures prices are edging lower today as concerns about increasing global supply of crude oil resurfaced with the resumption of oil production in Canada after wildfires and a third straight weekly increase in the number of US rigs drilling for oil. Shale drillers are looking at increasing production again as prices rise above $50 a barrel. August Brent crude rose 3% to $50.65 a barrel on London’s ICE Futures exchange.

Gold prices are extending losses toady with spot gold down 0.6% at 1282.05 an ounce after dropping 0.7% on Monday with poll results over weekend showing growing support for remain vote ahead of UK’s EU membership vote.

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