Markets and sterling volatile amid Brexit jitters

European stocks slid to their lowest in nearly four months and sterling continued to fluctuate as investor jitters intensified ahead of Britain’s EU membership referendum next week.

The Stoxx Europe 600 Index fell 1.8% to 326.8 at the close of trading. On Friday, European stocks slumped the most since the nadir of the February selloff as risky assets were shunned before a slew of monetary-policy and political events.

The UK holds its referendum to determine whether or not to stay in the EU on June 23. Optimism that it will choose to remain has given way to fear in global financial markets since the middle of last week as polls indicated the vote is too close to call.