Sterling tumbled to a 31-year low against the dollar and oil dropped below $50 a barrel as concerns deepened over the impact of Brexit on the UK economy.
Fears that a collapse in demand for new construction projects will panic spooked investors, depressing shares in housebuilders and property companies. Although the FTSE 100 was 0.4% higher, at 6547, the domestic-focused FTSE 250 mid-cap index tumbled more than 400 points, or 2.7%, to 15,680.
Adding to the gloom was a closely watched survey of the services sector, which showed a worse-than-expected reading of 52.3 in June, down from 53.5 in May. A reading above 50 indicates growth.
