FTSE 100 notches thin gain with one day to Brexit vote

U.K. stocks inched up Wednesday, as investors kicked off the final day of trade before the U.K. holds its historic Brexit referendum.

The FTSE 100 was up 0.1% at 6,232.04, with gains limited in part by losses among the defensive utilities group.

“Markets appear to be fighting to maintain bullish momentum in the runup to tomorrow’s U.K. referendum, despite heightened uncertainty as to the outcome. Will we stay or will we go?,” said Accendo Markets analysts Mike van Dulken and Augustin Eden in a note to clients.

The result of Thursday’s vote on whether the U.K. should stay in the European Union is expected early Friday morning, according to the Electoral Commission.

Movers: Shares of banks and insurance firms were higher Wednesday, with Lloyds Banking Group PLC  up 0.9% and RSA Insurance Group PLC rising 2.1%. The financial services sector benefits from so-called passporting rules that allow it to do easily conduct business throughout the EU, which has 28 members.

Sterling: The pound was buying $1.4686, compared with $1.4652 late Tuesday in New York.

“Bookmaker odds of a Brexit, a key driver of sterling volatility, suggests the betting market is growing more convinced about a Remain vote on Friday morning,” said Nawaz Ali, currency strategist at Western Union Business Solutions, in a note.

“Despite the major shift in momentum, the pound is still struggling to get above $1.47 — a level it has tried and failed to break for a sustained period several times this year,” he said.

Oil: Meanwhile, shares of BP PLC and Royal Dutch Shell PLC were up 0.3% and 0.4%, respectively, as oil prices reclaimed the $50-a-barrel level.

Oil prices advanced late Tuesday after the American Petroleum Institute reported that U.S. crude supplies dropped by 5.2 million barrels for the week ended June 17, a bigger-than-expected decline.

The closely watched Energy Information Administration’s weekly supply report will be released Wednesday.

Source: MarketWatch