6.30pm Markets Update

Updated: Friday 24 June 2016 18.42

Shock news that Britain had voted to leave the European Union hit European stock markets hard today, with London's FTSE 100 index recovering from early losses to close down 3.2%.

UK banking and construction shares were among the biggest fallers, with Lloyds Banking Group down 20%, while Barclays dropped by 15%. Airline stocks were also sharply lower, with shares in EasyJet down down 15%.

Aer Lingus owner IAG dropped over 20% after it said "it no longer expects to generate an absolute operating profit increase similar to 2015" due to a weaker than expected trading environment in the run up to the Brexit referendum.

The Frankfurt stock exchange suffered a 7% blow, while Paris slumped 8%, with Milan losing 12.5% and Madrid 12.4%.

At home, the Dublin market closed down 7.74%, after falling as much as 16% in earlier trade.

Among the big falls on the ISEQ index today were the banking stocks, with Bank of Ireland down 20% while Permanent TSB was down almost 20%.

Shares in Ryanair also dropped nearly 11% while Dalata Hotel Group was down by 14.4%. 

In the US, stocks have also fallen sharply, with the Dow Jones dropping as much as 538 points.

The S&P 500 index and Dow are on track for their biggest one-day percentage drop since September, while the Nasdaq is headed for its worst day since January.

All three indexes are set to post their second weekly decline in a row.

Earlier in Asian trade, Tokyo's Nikkei index lost a dramatic 1,286 points (7.9%) to finish at 14,952 while the Hang Seng index in Hong Kong dropped 609 points (2.9%) to end at 20,259 as investors greeted the UK news with shock.