British markets breathe sigh of relief as Scots vote 'No'

LONDON - British stocks were set to open higher on Friday while previously inflated bets on high volatility in the currency market over the next week fell away as the "No" camp looked set for victory in Scotland's independence referendum.

Scotland's First Minister Alex Salmond conceded defeat in the vote after the bulk of results had leant towards "No".

Sterling, already pushed up on Thursday by speculation on markets that Salmond's nationalists had fallen short of the majority needed to break up their union with England, gained another half per cent to as high as $1.6525.

London blue chip futures pointed to a 1.2 per cent rise when markets open later on Friday, while the cost of insuring against big swings in Britain's pound over the next week sank to 7.087 per cent from a close on Thursday of 11.8 per cent.