Market mayhem: US stocks plunge at the open, dragged down by financials as Goldman Sachs’ share price falls to three year lows
US stocks have tripped at the open, following mounting loses across Europe as the reality of last week's Brexit vote sets in.
The major US markets have extended a sharp sell off from Friday as investors worry over the global implications of the UK's vote to leave the European Union, despite the best efforts of senior politicians.
The Dow Jones Industrial Average fell by 1.29 per cent at its open, while the S&P 500 lost 1.25 per cent.
The Nasdaq was down by 1.41 per cent a short time ago.
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Goldman Sachs, which earlier said it thought Europe's Stoxx 600 could fall by more than five per cent over the next three months due to a post-Brexit slowdown, lost two per cent from its share price at the open, dropping to a three year low.
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Earlier today trading in some UK bank shares was temporarily suspended as the value of European lenders tumbled in response to the vote to leave the EU.
Financial giants Barclays and Royal Bank of Scotland (RBS) both fell more than 18 per cent by lunchtime as markets increasingly turned on stocks perceived to be most at risk from prolonged uncertainty over the UK's relationship with Europe.
Barclays was halted for five minutes this morning, while buying and selling in RBS was suspended on two separate occasions as shares tanked by more than 22 per cent.
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In Europe, share prices at Deutsche Bank and Credit Suisse fell to their lowest ever level.
Bank investors have baulked at revised expectations for as UK interest rate cut, as central banks around the world eye further forays around negative interest rates.
Markets are pricing in a 15 per cent chance of the Bank of England slashing interest rates below zero as financial markets continue to wobble, while there is an 80 per cent likelihood of rates being cut to 0.25 per cent before the end of the year.
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