The FTSE 100 and sterling both closed the day in the red, after the latest ICM Brexit telephone poll showed the 'leave' campaign had edged ahead of the 'remain' vote.
The sell-off in afternoon trading caused the UK blue-chip index to break its three-month winning streak, after ICM's poll showed 45% of respondents favoured leaving the European Union but only 42% of those polled wished to remain.
The benchmark index dropped to its lowest level since early February, declining by 40 points or 0.64% to 6,230.79.
Following this, the pound also dropped below 1.4503 against the US dollar while the euro rose to a one week high, trading at 76.75p against the pound. Sterling has continued to slide this morning, down at $1.4453.
Joshua Mahony, of IG, is quoted by The Telegraph saying: "Widespread selling for sterling and an immediate flight to safety signifies the fact that markets have been caught napping with an overconfidence that every poll would come out in favour of the 'remain' campaign."
Mining stocks were hit worst yesterday, after copper prices fell under the pressure of a resurgent dollar, following comments from the Fed's chair Yellen hinting at an interest rate rise in the coming months. BHP Billiton was down 2.1%, Glencore fell 2.4% and Rio Tinto dropped 1.1%.
Credit Suisse said the market rises seen in February are "are unlikely to improve much further" and that oil will struggle to maintain its $50 a-barrel sweet spot as supply disruptions could be short-lived following signs US shale producers may restart after the recent oil price rally.
Analysts at the investment bank also warned the rebound in Chinese activity is peaking as the pick-up in momentum was driven by policy.
Andrew Garthwaite, of Credit Suisse, said: "We continue to believe that there appears to be a real estate bubble, demographics are sharply worsening, export growth is almost flat and the financial sector is a less important driver."
Morningstar Investment Management (MIM) has launched a range of three multi-asset funds that will blend active and passive strategies to offer advisers low-cost solutions.
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.