LONDON: Global equities mostly rose and the pound clawed higher Wednesday -- the eve of Britain's referendum which markets expect to result in the country voting to remain in the European Union.
London's FTSE 100 index gained 0.3 percent in morning deals, with less than 24 hours before voting kicks off to decide Britain's future in the EU.
In the eurozone, Frankfurt won 0.6 percent and Paris added 0.3 percent in value, with all eyes on the referendum outcome due Friday.
Asian stocks mainly held in positive territory, despite the head of the US Federal Reserve warning that a vote to leave could hammer world markets.
The "Remain" camp has a razor-thin lead -- 51 percent versus 49 percent for "Leave", according to an average of polls compiled by What UK Thinks.
But financial markets and betting indices have Remain clearly in the lead.
"Although the poll predictions are still making the EU referendum results too close to call, global equity markets have maintained their positive Remain stance over the past few days and this has continued in European trade today, with equities pushing further forward," said Rebecca O'Keeffe, head of investment at online broker Interactive Investor.
"With less than 24 hours before voting starts, markets are now pricing in virtually no risk of an exit vote, which begs the question as to whether the euphoria is being overdone and how much upside still exists for investors -- or whether this is irrational exuberance and investors are ignoring the risks?"
Britain, which is the world's fifth largest economy, will suffer a powerful blow to growth and jobs, corporate chiefs warned, if the country becomes the first state to defect from the EU in the bloc's 60-year history.
While bookmakers say there is around a 75 percent chance the country will stick with the status quo, opinion polls predict a dead heat, with about one in ten voters still undecided.
Following a three-day rally fuelled by hopes the country will stay in the 28-nation bloc, analysts said traders were pausing to see what happens in Thursday's poll.
"Equity indices are mixed... having lost some of yesterday's bullish momentum," said Mike van Dulken, head of research at Accendo Markets.
"A pause is... to be expected as we creep ever closer to the UK's referendum result on Friday, polls continuing to suggest it is too close to call.
"Markets also have a tendency to hunker down into any major risk event, preferring to avoid leaving excessive risk on the table, especially when the outcome could be so ground-breaking -- politically, economically and of course for financial markets," he added in a note to clients.
In foreign exchange, the pound climbed on Wednesday to $1.4665, having hit a five-month peak at $1.4783 the previous day on expectations that Britain would stay in the EU.
"Several polls this week have seen an increase in Remain votes, and consequently sterling has rallied," said Currencies Direct dealer Callum McGrouther.
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