Smaller UK stocks tumbled and the pound hit fresh 31-year lows amid dire service sector data after the ‘Brexit’ vote.
The FTSE 250, which unlike its senior FTSE 100 Index sibling contains more UK-focused stocks, fell 418.8 points to 15,697.9.
The Footsie, which has more companies with less business in Britain, rose 5.76 points to 6528.02 while the FTSE AIM 100 was 41 points off at 3359.05.
Sterling tumbled to a 31-year low against the dollar and oil dropped below US$49 a barrel as fears rose about the hit that the UK economy could take from the EU referendum result.
Service sector PMI figures showed industry activity weakening in June and growth during the second quarter at its slowest since the first three months of 2013.
Just to compound the woe, Aviva PLC (LON:AV.) became the second major fund manager after Standard Life (LON:SL.) to suspend dealing in its property fund.
Hargreaves Lansdown analyst Laith Khalaf said: “The dominos are starting to fall in the UK commercial property market.”
Meanwhile, Bank of England governor Mark Carney said the UK was entering a more risk-adverse market since the vote and spillovers were “notable”.
On the markets, banks and housebuilders took the brunt of the negative sentiment, with Berkeley Group Holdings PLC diving 6.3% to 2329p and Legal & General Group PLC (LON:LGEN) losing 6% to 175.7p.
Over in the US, trading in commercial and financial stocks will resume after the public holiday yesterday.
Among smaller stocks, Tlou Energy Ltd (LON:TLOU) powered up 29.7% to 5.35p after the government of Botswana gave permission for a 10megawatt coal-bed methane scheme five times larger than the company had originally planned.
Shares in Petroneft Resources PLC (LON:PTR) ticked up 15.2% to 2.275p on news that the Russia-focused oil & gas explorer had successfully completed a three-well initial development programme.
But Gulf Marine Services PLC (LON:GMS) sank 15.4% to 39.75p as the support vessel provider reported early contract terminations.