US open: Stocks open with healthy gains as Brexit concerns ease

US stocks opened firmly in the black on Monday, with the Dow up more than 200 points as the most recent polls suggested voters in the UK were leaning towards a vote to remain in the European Union at Thursday’s referendum.

At 1455 BST, the Dow Jones Industrial Average and the Nasdaq were both up 1.3%, while the S&P 500 was 1.2% higher.

At the same time, oil prices advanced, with West Texas Intermediate up 1.5% at $48.68 a barrel and Brent crude up 1.4%, at $49.86.

The positive mood was underpinned by signs the Remain campaign was gaining ground in the UK. A Survation poll in the Daily Mail revealed that support for the Remain campaign was in the lead, while two Yougov polls – one for ITV's Good Morning Britain and one for the Sunday Times – both showed Remain in front.

In addition, a ComRes poll for the Sunday Mirror revealed the percentage of people saying they’d be relieved if the UK stayed in the EU rose to 45% after the murder of MP Jox Cox, from 35% before.

Meanwhile, an opinion survey conducted for the Observer between Tuesday and Friday showed an even split but of the 10% undecided, 36% said they were leaning towards Remain.

With just a few days until the referendum takes place, CMC Markets analyst Jasper Lawler said it was “important not to get Brexit tunnel vision”.

“Central banks still matter. A very dovish shift from the Federal Reserve’s James Bullard, who on Friday said the Fed may only raise rates once before 2018, has contributed to a drop in the US dollar, adding to sterling strength. Fed Chair Janet Yellen testifies on monetary policy before the Senate Banking Committee on Tuesday.”

Meanwhile, Societe Generale pointed out that while market participants may be distracted by Brexit, celebrating what looks for the moment to be a more likely vote for the status quo, when the fog actually clears all the same problems will still be there.

“Whatever the outcome of the Brexit vote this week investors will still be facing the prospect of negative rates and negative yields on a huge range of bonds, massive corporate leverage with worryingly rising delinquencies and of course expensive equity markets and falling profits,” the bank said.

“To that extent these political events are a distraction from the main event, weak global economic growth and perverse asset markets.”

In currency markets, the dollar slid against the pound, which surged to its highest level in two weeks on the referendum polls.

Monex Europe said: “Today’s improvement in risk appetite is weighing on the US dollar, which is down today versus most of the G10 currencies. This week’s trading will be dominated by developments in Europe, although on Wednesday the Federal Reserve’s chair Janet Yellen is due to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, which could trigger significant USD volatility.”

On the corporate front, Walt Disney shares pushed up 1.7% after its Pixar Animation Studio set a box-office weekend record for animated film Finding Dory.

Elsewhere, health insurers Anthem and Cigna were in focus following a Wall Street Journal report saying US antitrust regulators are concerned about their $48bn merger.

There are no major US data releases due on Monday.