Brexit poll support hits sterling and stocks

A new Brexit poll showing parity between the Remain and Leave votes saw sterling slip further to a two week low on Wednesday, also hitting equities as housebuilding stocks led the fallers.

A YouGov poll for the Times found 41% support for Remain and the same for the Leave camp with the difference being undecided.

This followed the surprising ICM/Guardian telephone poll on Tuesday that showed Leave was moving ahead, with 45% of in favour versus 42% support for Remain.

Just after midday, the pound was down 0.35% at $1.4432 and 0.6% lower versus the euro at €1.2931.

"The pound had previously been appreciating on increased expectations that the UK would vote to Remain in the EU," said Caxton FX's Alexandra Russell-Oliver. "Now the question is whether this marks a turning point in the polls in favour of Leave, if Remain again takes the lead, or if the polls remain too close to call ahead of the Referendum."

Monex's Ranko Berich said sterling's fall this week proved how sterling is "trading largely off Brexit risk at the moment".

The FTSE 100 was also down 0.8% at 6,181.33, with major fallers including Taylor Wimpey, Barratt Developments and Land Securities.

Clearing the 6200 mark has underpinned the sell-off in the FTSE and, said Ipek Ozkardeskaya of London Capital Group, could cause higher price volatility throughout the day. Energy and miners are the most vulnerable sectors.

"At 6170, the FTSE would have retraced the half of the May 19th – May 31st recovery. A step below the 6170 could pave the way toward the 6050/6000 as investors are expected to trim their long positions before the Brexit referendum."

Mike van Dulken at Accendo Markets added that equities were suffering as the breakdowns from comfortable consolidation/uptrends yesterday gathered pace on the back of the revival of Brexit risk and a raft of mixed data from across the globe.

"While markets had been warming to the prospect of a summer US rate rise, they now appear not so sure, with a more prominent bearish sentiment now overpowering the hitherto bullish dominance that had ushered us to recent highs."