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Banks in Europe saw their stocks fall sharply for a second straight session on Monday as investors digested the United Kingdom's historic vote last week.
The U.K. voted last week to leave the European Union in a referendum that shocked financial markets across the globe.
On Sunday, Goldman Sachs lowered its global growth forecast, adding it now sees the U.K. entering a recession by early 2017.
"The upshot is that the assumed hit to the UK and the moves seen in financial markets so far imply only moderate economic spillovers. The GDP effects are consistent with the forecast adjustments in the Euro area and the US already announced, although they suggest that Japan is at risk of even weaker growth than our Japan team's ½-1% forecast for 2016-2017 if Friday's FCI tightening does not reverse," the bank said in a note to clients.
U.S. bank stocks also fell Monday, but not a sharply as their European counterparts.