The pound collapsed to its lowest level since 1985
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- Share by emThe FTSE 100 Index saw more than £120bn wiped off the value of its constituent companies in the first few minutes of trading after the UK voted to quit the EIt was one of the biggest falls in the index's 32-year history, as it dropped by around 500 points, or more than 7% - and came after the pound hit a 31-year low against the US dollar overnight.
A number of companies saw 20% or more wiped off their values, with Wickes owner and builders' merchant Travis Perkins and Dixons Carphone down 30% in early trading.
Banks were badly hit, with state-backed Royal Bank of Scotland and Lloyds Banking Group, as well as Barclays, off by more than 20%. Household name retailers such as Marks & Spencer, Tesco and Sainsbury's shed more than 10%.
A trader in Tokyo
British Airways owner International Airlines Group issued a profit warning hours after the result became clear, saying earnings growth for 2016 would not match that of last year. Shares were down 20%.
There were steep falls in European markets too, with Germany's Dax down 8% and France's Cac 40 off 10%. In Japan, the Nikkei fell 8% overnight while Hong Kong's Hang Seng shed 3%.
Meanwhile, the Bank of England said it was on standby to take action after the UK's decision to quit the EU sent the pound plunging to the lowest level since 1985. The sharp dive in the currency was even bigger than on Black Wednesday in 1992.
The Bank said it was "monitoring developments closely" and pledged to "take all necessary steps to meet its responsibilities for monetary and financial stability".
Governor Mark Carney said market and economic volatility was to be expected as the UK negotiates new relationships with Europe and the rest of the world but that it was "well prepared for this" after extensive contingency planning with the Treasury.
He said the Bank was ready to provide more than £250bn of additional funds to keep markets functioning and that it would not hesitate to take further measures.
Some experts predicted that the Brexit vote would send the UK back into recession and there was speculation that interest rates could be cut from 0.5% to zero in coming months to cushion the economy from the expected blow.
CBI director-general Carolyn Fairbairn said it was now an "urgent priority" 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," she said.
Ratings agency Standard & Poor reaffirmed its previous warning that the UK stood to lose its AAA credit rating following a Leave vote.
The pound saw wild swings after the polls closed - research showed the Remain side marginally ahead at 11pm and the pound headed sharply up to a six-month high against the dollar at $1.50.
But after regional results began to paint a clearer picture, the pound nosedived by more than 10% to $1.33, while it was down 8% against the euro, though it later recovered slightly from these lows.
:: LIVE BLOG: Reaction As UK Deliver Historic Out Vote :: :: UK Votes To Leave EU In Historic Referendum
:: LIVE BLOG: Reaction As UK Deliver Historic Out Vote :: :: UK Votes To Leave EU In Historic Referendum
The collapse in the pound will be of immediate concern to holidaymakers who will find their money does not go as far in summer break destinations from California to the Costa del Sol.
It is also likely to push up some shop prices as imported goods will cost more for British consumers.
UK companies will also find that materials they buy, for example in dollars, will be more expensive.
However, the fall in the pound could make some British goods cheaper for foreign buyers, helping exports.
The price of gold - a traditional safe-haven during volatility - climbed to a two-year high.
Meanwhile, oil slipped by $3, or 5%, with expectations that the shockwaves from a Brexit will limit global demand.
But it was the fall in sterling that was the stand-out move.
Sky's Economics Editor Ed Conway said: "The pound has absolutely gone through the floor.
"This kind of thing almost never happens, you have to go back to eras like Black Wednesday - when the pound left the exchange rate mechanism - to see such instant falls."
The reaction was all the greater for markets since they had confidently been pencilling in a Remain victory on the back of a series of predictions from pollsters and bookmakers - sending the FTSE 100 and Index and the pound higher in Thursday trading.
The billionaire currency investor George Soros warned earlier this week that the pound could go as low as $1.15 in the event of a Leave vote.
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