UPDATE AT 10AM
FTSE100 recouped some lost ground and is down over 4% to 6,063 at the time of writing as world markets digested the shock EU referendum result. House builders and banks were taking massive hits, with Taylor Wimpey (LON:TW.) down over 27% and Lloyds (LON:LLOY) rashing over 19%. Over 17mln voters chose to leave the EU club versus around 16mln who wanted to stay in the most hotly contested election for years, and what happens next is uncharted territory. In Europe, the French CAC 40 is down over 7% to 4,121, while the German DAX lost 5.74% to 9,667 demonstrating the worry European markets have over trade beween the UK and the bloc and future trajectory of the European project. There are calls for a second referendum by remain supporters as they reckon the margin of victory was narrow, and an online governernment petitition has crashed such was the volume of signatures.
OPEN
Britain's top share index opened almost 7% lower after a historic EU referendum vote and as PM David Cameron told the nation he will resign.
FTSE100 is down 384 points at the time of writing at 5,953, the biggest drop since 2008, but spreadbetters had earlier predicted a fall well over 550 points.
The PM said he would do everything he could to 'steady the ship' in coming weeks but was not the person to take the captaincy and would aim to have a replacement by the Tory conference in October.
Negotiations would begin, he said, ahead of a departure from the EU after Article 50 of the Lisbon Treaty is invoked.
Addressing crowds outside Downing Street, Cameron assured the world's financial institutions and investors that Britain's economy was "fundamentally strong".
The referendum saw a 72% turnout and a 52% leave, 48% remain result. It throws everything political and financial into flux.
After initial noises, not least from the City on a remain win, the pendulum swung and leave won the vote in fairly convincing style. UKIP leader Nigel Farage called it Independence Day.
On the European bourses, France's CAC 40 is down over 8% at 4,103, while the German DAX is down 6.68% to 9,753.
Oil prices also dropped sharply with Brent crude down more than 5%, to $48.24 a barrel, its biggest fall since February.
— BBC Breaking News (@BBCBreaking) 24 June 2016
9am company snap - Randgold surges
The increased gold price due to safe haven status pumped Randgold Resources PLC (LON:RRS), up over 13% to 7,325p, while Fresnillo PLC (LON:FRES), up 11.54% to 1,382p.
Small cap shares unsurprisingly also lost ground, with FTSE AIM100 shedding 6.12% to 3,233, while FTSE AIM All share lost 5.95% to 683.660.
As expected hoiusebuilders bore the brunt of selling as the Brexit throws the question of continued low interest rates and house prices firmly on the table. Taylor Wimpey (LON:TW.) crashed over 22% to 140.7p. Banks were also sent intoi turmoil. Lloyds (LON:LLOY) fell over 17% to 59.34p and Barclays PLC (LON:BARC) shed 15% to 158.85p. £40bn was said to have been wiped off the value of Britain's biggest lenders.
Junior gold miner Anglo Asian Mining (LON:AAZ) added over 18% to 14.5p, while Proxama (LON:PROX) slumped over 58% to 0.30p as it said it would raise up to £2mln to bolster its balance sheet while it negotiates the sale of its digital payments division.
The company said it has received one letter of intent for an offer of between US10-12mln and due diligence was being carried out currently. Other parties are also interested, Proxama said, though there was no certainty any deal would be struck.
After Cameron's declaration of intent, governor of the BoE Mark Carney repeated there would be no initial change in the way British people can travel, or UK’s goods can move.
He has pledged over £250bn of additional funds to bolster what he called normal market operations.
FTSE 100 biggest fallers in early deals - 8:30am
Banks and financial services:
Barclays Plc (LON:BARC) down 25% to 139p
Lloyds Banking Group Plc (LON:LLOY) down 24% to 55p
Royal Bank of Scotland Group Plc (LON:RBS) down 25% to
Housebuilders and property:
St. James's Place Plc (LON:STJ) down 22% to 716.6p
Travis Perkins Plc (LON:TPK) down 14% to 1,649p
Taylor Wimpey Plc (LON:TW. down 24% to 145p
Persimmon Plc (LON:PSN) down 21% to 1,646p
Barratt Developments Plc (LON:BDEV) down 21% to 454p.
PREVIEW
FTSE100 is poised to crash at the open amid financial chaos as Britain has voted to leave the European Union.
After a closely contested and bitter fight, the historic poll saw a massive turnout of 72%, much more than the last general election and after initial noises indicating a remain win last night, the pendulum swung the other way.
Shock waves are being felt around the globe and the UK pound has crashed 10% against the US dollar at $1.3382 - the lowest level since 1985, while safe have gold has surged back to US$1,300 an ounce. The result was broadly 52% leave, 48% remain.
Having finished up 1.23%, or 79 points at 6,338 on Thursday, FTSE 100 is predicted by spreadbetter IG index to open over 575 points lower down, or a drop of up to 9%. If that decline was maintained by the day's end, it would be among the worst falls in history.
The next moves are uncertain and PM David Cameron, whose future as leader is unclear, is expected to make a statement before 9am, or before market open, in a bid to calm nerves after what will be for many a shocking night.
The implication now is that there will be a period of negotiation and deal-brokering before the Article 50 of the Lisbon Treaty is invoked, which was put in place to allow countries to leave the club.
The UK today still stands as a full member of the EU until it actually leaves, which is a process understood to take two years, but all of this is uncharted territory, so what happens before then is really an unknown.
Mike Van Dulken, at Accendo Markets, said: " Financial markets have delivered their reaction with futures suggesting the FTSE 100 will open (if indeed it does open; circuit breakers already triggered in Japan) with losses of over 550pts (down 8-9%).
"Following a one-week rally on hopes that the campaign tide had turned back towards Remain, we expect the hardest hit stocks to be financials (banks, insurance) followed by housebuilders, with commodities related-names (miners, oil) following close behind."
Michael Hewson, at CMC markets, added: "This vote also has huge consequences for the future of the EU as well as the economic recovery seen in the last six months, given the widespread dissatisfaction across Europe, and the prospect of other countries asking for similar referendums."
Director General of the CBI Carolyn Fairbairn said: "The urgent priority now is to reassure the markets. We need strong and calm leadership from the Government, working with the Bank of England, to shore up confidence and stability in the economy.
“The choices we make over the coming months will affect generations to come. This is not a time for rushed decisions."
The Bank of England said in a statement it will “take all steps necessary” to ensure financial stability in the UK amid news Standard and Poors said Britain was likely to lose the gold plated triple A credit rating.