Britain's Brexit vote has dealt a hammer blow to heavyweight financial stocks, with some shares being temporarily suspended as the losses stack up.

Royal Bank of Scotland fell more than 8 per cent - down 14 per cent causing trading in these shares to be halted for five minutes as automatic circuit breakers spring into action.

Sterling, which continued its negative slide overnight, staged a mini rally after Chancellor George Osborne said the UK economy is "about as strong as it could be to confront the challenge our country now faces", adding Britain remains "open for business".

Michael Hewson, chief market analyst at CMC Markets UK, said: "While the Chancellor's measured tone appears to have helped alleviate concerns about a rudderless UK ship, concerns about the banking sector continue to be a pressure point for investors, as dark threats about the removal of financial pass-porting continue to weigh, and yields continue to fall.

"This has prompted further selling of banking stocks which have continued to remain under pressure with Royal Bank of Scotland and Barclays continuing their Friday slides.

"European banking stocks don't appear to be faring any better as the prospect of continued uncertainty about a future relationship between the UK and the EU and the linkages between the respective banking sectors continue to fuel uncertainty about the stability of the sector."

Housebuilders were also the victim of a sharp sell-off, with Taylor Wimpey falling 15 per cent and Charles Church-owner Persimmon slipping just shy of 13%.

However, budget carrier easyJet was the biggest faller, slumping 18%, after it said it would take a £28 million hit following two months of turbulence and warned that Brexit would also have a negative impact on the airline.

In May and June strikes in France and severe weather and congestion issues at Gatwick led to more than a thousand cancellations, with the EgyptAir tragedy also denting demand.

Analyst Nicholas Hyett of Hargreaves Lansdown, said: "A vote by Britain to leave the EU can hardly help a company like easyJet, particularly seeing as the fall in the pound will put Britons off travelling overseas.

"However, this morning's profit warning is as much a result of massive operational disruption as falling passenger demand. Rain, strikes and the impact of the EU referendum have all damaged profits, and resulted in revenue per seat at constant currency falling further."