Shares in property firms dragged the FTSE 100 lower after Standard Life Investments suspended trading in its UK property fund.
The company blamed the move on “exceptional market circumstances” following the EU referendum result.
The FTSE 100 index fell 35.33 points to 6,486.93, while the FTSE 250 sank 374.05 points, or 2.3%, to 15,742.65.
The pound was down sharply, dropping 0.8% against the dollar to $1.3177 (£1.00) and down 0.9% against the euro to €1.1814 (£1.00).
Analysts are waiting for the Bank of England’s latest Financial Stability Report, due out later. The Bank is expected to relax capital requirement rules for banks following the referendum result.
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