Turnaround in Brexit Polls Sends UK Stocks Higher

Waning Brexit Fears Fuel Bank Rally

Not to be left out, UK-headquartered banks, Barclays PLC (ADR) (NYSE: BCS), and Royal Bank of Scotland Group PLC (NYSE:RBS) are also each up today on the back of the sentiment change. Banks with substantial British or European exposure have more to lose than American banks in the event that Britain leaves the EU. The shock of Britain leaving could cause black swan events that freeze credit or decrease liquidity in essential markets. They could cause a recession that leads to more write-downs and lower profits. If Britain stays inside the EU, there is more certainty and the banks’ future profits are more visible.

Among the funds we track, 12 funds owned $289.27 million worth of Barclays PLC (ADR) (NYSE:BCS)’s stock, which accounted for 0.80% of the float on March 31, versus 12 funds and $275.4 million, respectively, a quarter earlier. At the same time, 10 funds amassed $32.88 million worth of Royal Bank of Scotland Group PLC (NYSE:RBS)’s shares, which represented just 0.10% of the float at the end of the first quarter, versus eight funds and $16.99 million, respectively, at the end of the fourth quarter.

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