US stocks fall with global shares

The aftershocks of the UK's vote to leave the European Union reverberated across financial markets after a weekend of political turmoil, with the pound extending its record selloff and European equities dropping to levels last seen in February. The S&P 500 dropped 1.6 per cent to the lowest since mid-March, while the slide in Europe's equity benchmark reached 11 per cent over two days, the most since 2008 as bank shares tumbled. Sterling fell below Friday's lows with a 3.6 per cent slide to the weakest since 1985, while the dollar strengthened with the yen. Demand for haven assets boosted gold, and Treasury 10-year yields approached an almost four-year low.

The S&P 500 fell to 2,002.50 at 12:16 p.m. in New York, sliding below its average price for the past 200 days after Friday plunging the most in 10 months. The odds of a Fed interest rate increase by February plunged to about 10 percent from 52 per cent on Thursday. Commodities producers led losses with a rout of 3.5 per cent, while financial shares continued their slid with a three per cent drop. Lazard Ltd and Evercore Partners Inc posted their biggest two-day declines since 2008, leading a slump of independent investment banks. Utilities and phone stocks gained. The Stoxx Europe 600 Index slid 4.3 per cent following a seven per cent rout on Friday. The FTSE 100 lost 2.9 per cent. The Stoxx 600 Banks Index, which included European companies involved in banking, fell 7.6 per cent after dropping 14 per cent on Friday. The volume of European shares changing hands on Monday was almost three times the 30-day average. The MSCI Emerging Markets Index dropped 1.6 per cent. The gauge slid 3.5 per cent on Friday. Shares in emerging Europe and Africa were among the hardest hit.

The pound was the worst performing among major currencies, falling to $1.3178 after Friday's 8.1 per cent plunge. The euro weakened 1.3 percent versus the greenback, after sliding 2.4 percent in the last session.