Stock futures pointed to another day in the red on Monday, piling on heavy losses suffered at the end of last week. Global markets were declining as traders digested Friday's pro-exit vote from the United Kingdom.
S&P 500 futures were down 0.74%, Dow Jones Industrial Average futures declined 0.75%, and Nasdaq futures fell 0.88%.
A vote for a "Brexit" rocked world markets Friday after days of growing confidence that the United Kingdom would opt to remain in the European Union. The U.K. referendum resulted in victory for the "leave" campaign with 51.8% support.
Major banking stocks continued their decline over worries of two years of renegotiations across Europe. Regulations for the finance industry, particularly regarding cross-border transactions among EU countries, will likely be altered as the U.K. prepares its EU exit.
U.S.-listed shares of Lloyd's (LYG) - Get Report plummeted 16% in premarket trading, Barclays (BCS) - Get Report tanked 23%, and RoyalBank of Scotland (RBS) - Get Report slumped 20%. Barclays and Royal Bank of Scotland were set to open trading at roughly seven-year lows.
George Osborne, the U.K. Chancellor of the Exchequer, assured that the Treasury and the Bank of England have come up with further contingency plans following Britain's vote to leave the EU. Osborne said "swap lines" had been established so institutions could access foreign currency if needed. He also warned that volatility would likely continue for now.
Safe-haven assets such as gold were on the rise as traders fled riskier investments. Gold jumped nearly 5% on Friday in its best rally in seven years. Gold producers such as Randgold Resources (GOLD) - Get Report climbed in premarket trading.
The U.S. international trade deficit widened to $60.6 billion in May from $57.5 billion in April, according to the Census Bureau. Economists had expected the deficit to widen to just $59.3 billion.
Medtronic (MDT) - Get Report was slightly lower in premarket trading after agreeing to buy Heartware (HTWR) in a deal valued at $1.1 billion. Medtronic will pay $58 a share, a 93% premium to Heartware's closing price on Friday. The deal is expected to close in Medtronic's quarter ending in October.