Stocks jump as Brexit chances seem to slip

Last Updated Jun 20, 2016 4:08 PM EDT

U.S. stocks rallied on Monday as the latest polls suggested that the United Kingdom would vote to stay in the European Union.

Stocks around the world sprang off four-week lows as odds from bookmakers found diminished odds of the U.K. departing the EU after a pro-European lawmaker was slain late last week.

A survey conducted over the weekend found 45 percent of Brits favoring staying within the EU, and 42 percent saying they'd vote to leave.

"Look no further than recent UK-EU referendum polls and developments in betting markets as to why the British Pound, and risk assets generally are rallying so sharply at the start of the week," Christopher Vecchio, currency analyst at DailyFX, noted in emailed comments. "The latest poll showed 'remain' with a 3-point lead over 'leave,' and odds on betting markets, as examined by aggregator Oddschecker, have all but evaporated."

Reversing course after the prior week's losses, the S&P 500 (SPX) rose 12 points, or 0.6 percent, to 2,083. The Dow industrials (I:DJI) gained 130 points, or 0.3 percent, at 17,805. The Nasdaq Composite (COMP) gained 37 points, or 0.8 percent, to 4,837.

Data from oddsmakers found less than a 30 percent chance of a Brexit, down from 40 percent in the middle of last week.

Federal Reserve Chair Janet Yellen last week said that the British vote was a consideration in setting U.S. monetary policy and the decision by central bankers to hold rates unchanged.