Worst day since Brexit amid global sell-off
The Irish stock exchange closed down more than 1pc, and Britain's major share index had its worst day since the Brexit vote as a violent global sell-off in stock markets and a spike in volatility shook investors.
The FTSE 100 closed down 2.6pc at 7,141.4 points at the end of a chaotic day of trading which drove volatility sharply higher.
It suffered its worst daily fall since June 24, 2016, when Britain's vote to exit the European Union roiled global markets. The index touched its lowest level since December of that year as investors rushed out of equities, which have surged since the start of the year.
"There's a sense of relief that we finally have a meaningful correction; it's long overdue. We have been positioned for it for a while, so we can actually breathe again," said Christopher Peel, chief investment officer at Tavistock Wealth.
"This type of price action, where you have a correction as severe as it has been, is a great reminder to investors, traders and regulators that it's not all a one-way bet," he added.
"It's ultimately a good thing, so that we get some long-term investors that do have cash on the sidelines selectively adding to their positions."
Volatility surged across the European market, with the gauge of STOXX 50 volatility posting its biggest one-day gain ever.
The stars of the past months' rally were the worst fallers on Tuesday.
Financials led the slide, taking 53 points off the index. HSBC, Prudential, Lloyds and Barclays tumbled 2.5 to 4pc.
In Dublin names like Bank of Ireland, C&C, First Derivatives and Hibernia Reit saw steep falls, but AIB defied the trend to close up, despite no real newsflow in the name.