Investing.com - Wall Street futures continued move lower on Monday, as the U.K. shock decision to leave the European Union last week continued to weigh heavily on equity markets around the globe.
The blue-chip Dow futures was down 0.74%, the S&P 500 futures lost 0.74%, while the tech-heavy Nasdaq 100 futures retreated 0.87%.
U.K. Finance Minister George Osborne said Monday that the vote to leave the EU was likely to lead to further volatility in financial markets but claimed that the economy is as strong as it could be to face the challenges ahead.
Investors fear that the decision could hit investment in the U.K. economy, threaten London's role as a global financial capital and trigger months of political uncertainty after British Prime Minster David Cameron resigned on Friday.
The vote could also lead to a breakup of the U.K., with Scotland now highly likely to hold a second independence referendum.
London’s FTSE 100 was down 1.61% on Monday, while the pound remained near its lowest level since 1985.
Following the Brexit vote, the Federal Reserve said on Friday that it was “prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy.”
On Sunday, Goldman Sachs (NYSE:GS) issued a research note warning that the U.K. might enter a recession by next year and sharply downgraded global growth expectations.
U.S. lenders were expected to continue to track their global counterparts lower on Monday. Citigroup (NYSE:C) warned that banks were one of the most exposed sectors to Brexit.
JPMorgan (NYSE:JPM) shares were down 1.43% in pre-market trade, while rival Bank of Americal lost 0.92%.
Energy stocks were also set to extend the previous session’s losses, as crude prices remained on the downside in risk-off trade.
Other companies, such as Invesco, were likely to remain in focus on Monday due to their high level of exposure to the U.K. Invesco, which received a quarter of its revenue from Britain last year, saw shares dive over 13% on Friday.
No major U.S. data was scheduled to be released on Monday.