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The FTSE 100 rose 2% to 6,144, up 123 points.
The Royal Bank of Scotland Group (LON:RBS) was the biggest winner, up almost 6% or 13p to 235p.
The biggest loser was Randgold Resources Ltd(LON:RRS) down almost 2% or 155p, to 6,495p.
Preview at 6.55am
The FTSE 100 looks set open strongly with the opinion polls suggesting the ''remain campaign'' has a narrow lead ahead of the crucial vote on Thursday.
The spread betting firms are predicting the index of blue chip shares will add 175 points taking it to 6,196.09.
''The ''remain'' camp has polled wellwith David Cameron finally showing some heart in the live BBC debate at least according to some,'' said Chris Weston, analyst at IG.
''Nigel Farage''s ''bursting point'' poster concerning the refugee crisis looks as though it has backfired with many seeing the horrific humanitarian side of the issue.''
Asia''s main markets have reacted positively to the latest poll data with the odds of the UK leaving the EU now slashed to just 30%.
The Nikkei, buoyed also by a retreat in the value of the yen, advanced 2.4%, while Hong Kong''s Hang Seng was up 1.2% and the ASX advanced 1.5%.
Back here in Blighty the big scheduled corporate news of the week comes on Thursday too from Tesco, which delivers an update on trading.
It is a chance to for the investing public to assess whether boss Dave Lewis has managed to steer the super tanker away from the rocks.
The latest industry data suggests his reforms are having some impact on Tesco''s top line.
In what looks like a busy week, there''s news also from Whitbread, Debenhams and Photo-Me.
*Brent crude 46 cents higher at US$49.63 a barrel.
*Gold US$4.90 lower at US$1,287.60 per ounce.
*Rumour: Two of Abu Dhabi''s largest banks, State-owned National Bank of Abu Dhabi and First Gulf Bank, have said they are in talks to merge, potentially sparking further rationalisation in the United Arab Emirates as the oil-rich region weathers the oil price slump FT.
City Headlines
*Officials in Frankfurt are looking at plans to seize trading in hundreds of billions'' worth of euros processed in London should the UK vote to leave the European Union Times.
*A Chinese state-backed group has formed a joint venture with Ingenious Media, which has invested in movies such as Avatar and Life of Pi, to co-produce independent films in a deal worth $200 million FT.
*Several of Britain''s biggest newspaper groups are in talks aimed at finding ways of working more closely in a bold move by the traditionally fierce rivals to combat a brutal decline in print advertising revenues FT.
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