Bearish bets against U.K. stocks have fallen almost every week since Prime Minister David Cameron said last month Britain will hold a referendum on its European Union membership. The average number of FTSE 350 Index shares out on loan is now at its lowest level since January, according to Markit. That means the market is discounting the possibility of a EU exit or that traders are betting it won’t be as devastating as previously feared, Simon Colvin, an analyst at the data researcher, wrote in a report.

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