Global equities traded near a one-week high and the pound approached its strongest level in five months a day before Britons vote on membership in the European Union. Oil and copper led gains in commodities.
The MSCI All Country World Index was little changed after its biggest three-day advance in more than a month as bookmakers' odds implied there's only about a one-in-four chance that Britons will opt to leave the EU in Thursday's referendum. Sterling rose against most of its 16 peers. Crude oil was set to close above $50 a barrel for the first time in almost two weeks.
Global stocks have climbed in the past three days as odds at betting shops indicate the chance of a so-called Brexit dropped to about 26 per cent from 43 per cent a week ago, before the murder of a UK lawmaker who favored staying in the EU. Opinion polls suggesting the vote is too close to call are nonetheless keeping a lid on investor sentiment following multiple warnings from central bankers and governments that a victory for the "Leave" camp would destabilize financial markets around the world.
"What investors hate the most is uncertainty," said Chihiro Ohta, a senior strategist at SMBC Nikko Securities Inc in Tokyo. "Most are just waiting on the sidelines to see what happens."
Stocks
The MSCI All Country World Index was little changed as of 9:26 a.m. in London, after climbing 2.6 per cent over the last three sessions. The Stoxx Europe 600 Index swung between gains and losses, while MSCI's gauge of shares in Asia excluding Japan gained 0.6 per cent. Japan's Topix lost 0.7 per cent as benchmarks advanced in Hong Kong, Shanghai and Singapore. Futures on the S&P 500 slipped less than 0.1 per cent.
Currencies
Sterling appreciated 0.1 per cent to $1.4664, after reaching a five-month high of $1.4783 on Tuesday. It's jumped 3.4 per cent over the past five sessions.
Since British lawmaker Jo Cox's murder last week "a fair bit of repricing has occurred in the pound on the back of the shift in polls that were earlier clearly favouring Leave," said Rodrigo Catril, a currency strategist at National Australia Bank Ltd in Sydney. "The pound will definitely be volatile ahead of the vote."
The Bloomberg Dollar Spot Index fell 0.2 per cent, after snapping a four-day losing streak on Tuesday. The yen climbed 0.3 per cent to 104.43 versus the greenback, extending this month's advance to about 6 per cent. The Australian and New Zealand dollars appreciated 0.4 per cent.
Commodities
Crude oil rose 1.1 per cent to $50.40 a barrel in New York as US industry data showed crude stockpiles declined, trimming a glut. Inventories fell by 5.2 million barrels last week, the American Petroleum Institute was said to report. Government data Wednesday is forecast to show supplies slid by 1.5 million barrels, slipping for a fifth week while still more than 100 million barrels above the five-year average.
"The oil price will probably continue to labor around this $45 to $50 a barrel area for some time," David Lennox, an analyst at Fat Prophets in Sydney, said by phone. "Demand is still under question. Inventories are declining, but they're still large and will cap any significant rally."
Gold was little changed, after sliding 2.4 per cent over the last two days.
Corn added 0.8 per cent in Chicago following a 5.7 per cent slide in the last session that marked the contract's steepest drop since it began trading in December 2013. Prices dropped on Tuesday amid an improving supply outlook for the US and Brazil, the world's top exporters.
Bonds
The yield on US Treasuries due in a decade retreated from a two-week high, falling two basis points to 1.69 per cent. Federal Reserve Chair Janet Yellen reiterated on Tuesday that a vote to leave the EU could have "significant economic repercussions," even as she warned against exaggerating its global impact. She had said on June 15 that Brexit risks played a part in the Federal Open Market Committee's decision to hold off from raising interest rates.
Futures indicate 49 per cent odds that the Fed will tighten policy this year, down from 76 per cent probability at the start of the month.
