European stocks look set to open lower on Monday as investors continue to digest the impact of the U.K.'s historic vote to leave the European Union.
While senior EU politicians demanded quick U.K. exit from the bloc to avoid a period of uncertainty for the remaining 27 EU countries, Bank of England Governor Mark Carney stressed that there would be a period of uncertainty and adjustment following the EU referendum result.
An online petition signed by more than three million people calling for a re-run of the Brexit referendum is being investigated after claims it has been hacked.
British Labour Party leader Jeremy Corbyn is facing a revolt from some of his party's legislators but insisted he would not give up his job.
Scotland's First Minister Nicola Sturgeon said on Sunday the country would do whatever it takes to remain in the European Union, including potentially blocking the legal process behind Britain's exit from the bloc. Northern Ireland voters also expressed a preference for keeping Britain in the EU.
The U.S. Federal Reserve said it is carefully monitoring developments and stands ready to act with its global central bank partners to shore up liquidity in markets, if needed.
International Monetary Fund Managing Director Christine Lagarde warned that negotiations on new arrangements with the EU and other trading partners could take years, leading to a protracted period of uncertainty.
Asian shares traded mixed this morning as companies with U.K. exposure remained under selling pressure. Japan's Nikkei index bucked the downtrend and was up more than 2 percent after having lost nearly 8 percent on Friday. Benchmark indexes in Australia, China and New Zealand also traded in positive territory.
The British pound fell more than 2 percent and oil suffered fresh losses, while gold extended gains to trade at a two-year high.
All eyes are now on a European Central Bank Forum beginning later in the day. Speakers include ECB President Mario Draghi, Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney.
U.S. stocks plummeted on Friday as investors pondered the effects of Brexit on the U.S. economy. Disappointing durable goods orders and consumer sentiment data also dampened investor sentiment. The Dow tumbled 3.4 percent, the tech-heavy Nasdaq plunged 4.1 percent and the S&P 500 shed 3.6 percent.
In Europe, stocks fell the most in nearly eight years Friday, sterling hit its lowest level against the dollar in three decades and the 10-year UK gilt yield tumbled to a record low, as markets were caught off guard by the EU referendum result.
The pan-European Stoxx Europe 600 index retreated 7 percent. The U.K.'s FTSE 100 dived over 8 percent at the open before recouping some losses to end the session 3.2 percent lower. The German DAX tumbled 6.8 percent and France's CAC 40 index lost 8 percent.
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