* Risk appetite picks up, a little
* "Remain" leads before UK referendum, bookmakers say
* Yellen hints at no rate hike in July
By Jamie McGeever
LONDON, June 22 (Reuters) - Stocks and sterling rose while
the safe-haven assets gold and bonds slipped on Wednesday, as
investors grew more optimistic Britain would vote to remain in
the European Union in its referendum on Thursday.
Riskier markets also drew support from Federal Reserve Chair
Janet Yellen's comments on the U.S. economy on Tuesday, when she
virtually ruled out a July interest rate hike.
Europe's FTSEuroFirst index of 300 leading shares was up 0.6
percent .FTEU3 , Germany's DAX was up 1.1 percent .GDAXI ,
France's CAC 40 up 0.9 percent and Britain's FTSE 100 up 0.8
percent .FTSE .
Basic resource stocks were among the biggest gainers in
Europe, lifted by an increase in the price of oil almost 1
percent.
U.S. futures pointed to a rise of 0.2 percent at the open on
Wall Street ESc1 , following Tuesday's 0.27 percent gain by the
S&P 500 Index.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.5 percent, its fourth straight daily
gain, but a strong yen caused Japan's Nikkei .N225 to fall 0.6
percent.
The strength of the yen, often considered a safe haven,
countered the broader increase in risk appetite across financial
markets a day before Britain's EU referendum.
"In recent sessions, markets have been reacting to every
indicator, opinion poll and betting odds alike. Sterling, the
FTSE 100 and the gilt market are all (relatively) flat,
levelling off from some of the cautiously optimistic rallies
earlier in the week," said Dean Turner, economist at UBS Wealth
Management.
JULY BETS COOL
Sterling rose around 0.5 percent against the dollar,
climbing above $1.47 GBP= and edging back towards Tuesday's
$1.4781. The pound has risen 5 percent since dropping to a
three-month low of $1.4010 on Thursday.
Betting patterns with bookmakers have shown a re-opening of
the gap in favour of "Remain" after the murder last week of a
pro-EU lawmaker appeared to derail the "Leave" campaign.
For the latest Reuters news on the referendum including full
multimedia coverage, click
Fed chief Janet Yellen said on Tuesday the risk of Brexit
was something that needed watching "very carefully", but she
added that the central bank's ability to raise interest rates
this year may hinge on a rebound in hiring
"Yellen struck a cautious tone in her testimony to the
Senate Committee, tempering expectations of an interest rate
hike in July," said Ana Thaker, market economist at
PhillipCapital UK. "Yellen said it was a case of 'whether' the
economy would strengthen, not necessarily when."
The dollar slipped 0.2 percent against the yen JPY= to
104.58 yen, and the euro rose 0.4 percent to $1.1290 EUR= .
European Central Bank President Mario Draghi said on Tuesday
that Britain's referendum was adding uncertainty to markets, and
that the ECB was ready to act with all instruments if necessary.
As investors grew more hopeful of a "Remain" vote, spot gold
XAU= languished, falling 0.2 percent to a near-two-week low of
$1,262 an ounce.
On the other hand, oil prices extended their recovery after
news of a larger-than-expected withdrawal from U.S. crude
stockpiles.
Crude inventories fell by 5.2 million barrels for the week
ended June 17, the American Petroleum Institute said. The trade
group's figures were triple the withdrawal of 1.7 million
barrels forecast by analysts in a Reuters poll. API/S
Brent crude futures LCOc1 advanced 0.4 percent to $50.80
per barrel. The new benchmark August contract for U.S. crude
futures CLc1 rose 0.5 percent to $50.10.
Bonds were marginally weaker, with the yield on 10-year UK
gilts up two basis points to 1.31 percent GB10YT=RR .
Longer-dated yields on U.S. and German bonds inched up, too.
Benchmark 10-year U.S. bonds were flat at 1.69 percent
US10YT=RR . Germany's 10-year yield edged up a basis point to
0.06 percent EU10YT=RR .
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Shanghai CSI 300 and global effects interactive https://t.co/YqIYLIbInP
Chinese A-shares vs developed and emerging stocks http://link.reuters.com/rac25w
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