The recent surge in volatility in the currency market has done little to disturb the relative calm that investors in European stock markets are betting on.

With only one month to go before the UK votes on whether to remain in the EU, investors are piling into contracts protecting against stock swings, paying prices not seen in more than a year for the hedges.

A rebound in banks helped lift European stocks from their lowest levels since 2013, trimming a second weekly decline.