LONDON (Reuters) – Two new polls today pointed  to an indecisive result in Britain’s upcoming election, with one  suggesting the ruling Labour Party would emerge as the biggest  party and the other giving the edge to opposition Conservatives.

A YouGov poll for the Sunday Times showed the centre-right  Conservatives with a four-point lead over Labour, down one point  from a week earlier.

The poll of just over 1,500 people put the Conservatives on  37 per cent ahead of Labour on 33 per cent and the Liberal  Democrats on 17 per cent.

If repeated at the election widely expected on May 6, it  would give Labour 302 seats in parliament against 277 for the  Conservatives, the newspaper said. Neither party would have an  outright majority.

Financial markets fear a minority or coalition government  would be reluctant to take the strong action investors want to  cut Britain’s budget deficit, forecast to reach 178 billion  pounds ($270 billion) this year, more than 12 percent of GDP.

Markets punished the pound earlier this month after a poll  showed Labour could stay in power but without a clear majority.

The Conservatives are bidding to end 13 years of Labour  rule. But polls increasingly point to a hung parliament, in  which no party has a majority, for the first time since 1974.

Labour needs a smaller percentage of the national vote than  the Conservatives do to win a majority because its vote is  concentrated in urban constituencies, which tend to have smaller  electorates than rural areas.