* U.S. stocks track Europe lower on Brexit concerns
* Brexit fallout crushes financial stocks
* Treasuries, dollar index lifted in scramble to safe-haven
assets
* Sterling hits 31-year low on Brexit vote aftermath
(Adds U.S. market open, byline, dateline, updates prices and
adds commentary)
By Hilary Russ
NEW YORK, June 27 (Reuters) - Britain's shock vote to leave
the European Union roiled global markets for a second day on
Monday, hammering U.S. and European banks, lifting bond and gold
prices, and dragging the British pound to a 31-year low.
U.S. stocks opened sharply lower, following European
markets, pulled down by financial stocks amid uncertainty over
London's future as the region's financial capital.
The S&P financial index .SPSY fell 2.5 percent. JPMorgan (NYSE:JPM)
JPM.N was down 3.3 percent while Bank of America (NYSE:BAC) BAC.N was
down 5.3 percent.
The Dow Jones industrial average .DJI fell 295.06 points,
or 1.7 percent, to 17,105.69, the S&P 500 .SPX lost 39.83
points, or 1.95 percent, to 1,997.58 and the Nasdaq Composite
.IXIC dropped 110.39 points, or 2.34 percent, to 4,597.59.
An index of European bank shares .SX7P fell 8.89 percent.
Royal Bank of Scotland RBS.L fell 16 percent while Barclays
BARC.L shed 18 percent.
Italian banks also suffered. UniCredit CRDI.MI fell more
than 9 percent. The government was looking at options to help
its banks and prevent further share price falls.
European stocks .FTEU3 took a beating for a second day,
down 3.7 percent. Banks at a seven-year low helped push London's
top share index .FTSE down by 2.5 percent.
British finance minister George Osborne sought to reassure
markets, saying the world's fifth-largest economy was strong
enough to cope with the Brexit-inspired volatility, but the
positive impact on sterling was only fleeting.
MSCI's all-country world stock index .MIWD00000PUS fell 2
percent.
"There is a crisis of confidence in the markets," said Todd
Morgan, Chairman at Bel Air Investment Advisors in Los Angeles.
"But there is a lot of cash lying around and interest rates are
low, the world will survive."
Yields on core government debt fell again. German 10-year
bond yields DE10YT=TWEB , the benchmark for euro zone borrowing
costs, fell as low as minus 0.11 percent but held above Friday's
record low of almost minus 0.17 percent.
In the scramble for safe-haven assets, benchmark U.S.
Treasury yields hovered near four-year lows. The 10-year note
US30YT=RR fell nearly 11 basis points to 1.47 percent.
"The U.S. remains a very powerful place where people can
find a safe haven. Foreigners are also getting a kick with the
rise in the dollar," said Guy LeBas, chief fixed income
strategist at Janney Montgomery Scott in Philadelphia.
Sterling fell more than 3.65 percent to $1.310, surpassing
its Friday low as yields on 10-year British government debt fell
below 1 percent for the first time GB10YT=RR .
"Uncertainty equals currency weakness, we know this, and
there is no sense that this (sterling) is a value trade right
now and that you have to get back in. It is too early for anyone
to start calling a bottom," said Neil Mellor, a currency
strategist at Bank of New York Mellon (NYSE:BK) in London.
The euro EUR= , also seen vulnerable to the exit from the
EU of its second-largest economy, fell 1.2 percent to as low as
$1.098. The yen firmed as high as 101.52 per dollar JPY= .
The dollar index, which tracks the greenback's value against six
currencies .DXY , was up 1 percent.
The rallying dollar helped drag oil prices down. Brent crude
LCOc1 dropped more than 2 percent to $47.35 before 12 noon EDT
(16:00 GMT), while U.S. crude CLc1 slipped $1.12 to $46.52.
Brent and U.S. crude futures have lost about 7 percent since
Thursday's settlement in the rush away from global risk assets.
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Reuters' new Live Markets blog on European and UK stock markets
reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
Brexit graphic package http://tmsnrt.rs/1Ke31HF
Britain and the EU http://tmsnrt.rs/28QKboK
Market reaction http://tmsnrt.rs/28QKdwV
Asset performance in 2016 http://reut.rs/1WAiOSC
Currencies in 2016 http://link.reuters.com/tak27s
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(Aditional reporting by Yashaswini Swamynathan in Bengaluru,
Richard Leong and Barani Krishnan in New York, Hideyuki Sano in
Tokyo, Nichola Saminather in Singapore, Patrick Graham, Alistair
Smout and Dhara Ranasinghe in London; Editing by Toby Chopra and
Nick Zieminski)