The pound has rallied strongly against the dollar and the FTSE 100 has soared in the wake of polls and betting markets suggesting Remain ahead in the run-up to the European Union referendum.
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The blue chip FTSE 100 index was down 0.2 percent at 6,189.30 points by 0828 GMT, having closed sharply higher on Monday.
Mining stocks weighed on the FTSE 100, with Anglo American, Antofagasta, BHP Billiton, Rio Tinto and Glencore all down between 1.3 percent to 2.7 percent, tracking the price of copper lower.
The latest surveys, including a Survation poll for The Mail on Sunday which had “Remain” back in the lead and three points ahead – fuelled further appetite for risk across Asia on Monday following a partial recovery in values on Friday.
The pound rose 1.49 per cent against the greenback to 1.45 U.S. dollars on Monday morning, bouncing back from last week’s losses.
Margaret Yang, an analyst at CMC Markets in Singapore, said: “The entire market is now focused on the UK’s European Union referendum result”.
“Judging by the market reaction over the last two days, more volatility is likely this week”.
Investors are feeling more bullish after the first opinion polls since the murder of Labour MP Jo Cox suggest the Remain campaign is mounting a fightback following a two-day suspension in campaigning.
This recent shift in public opinion from leave to remain is an important indicator of how the country might vote in Thursday’s referendum.
ETX Capital believes there is a 75% probability that the Remain campaign will win, but head of trading Joe Rundle has warned the accuracy of polls can not be relied upon and there is still “huge uncertainty” for markets.
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And on which side “seems credible and trustworthy”, Remain increases by 4 points to 39 per cent while Leave increases by 7 points to 36 per cent, again reducing Remain’s net lead to 3 points, the smallest it has ever been.
