The Dow Jones shed almost 300 points in yesterday's session with sentiment knocked following Greek plans to hold a referendum on the European bailout plan agreed last week.
With the US market on edge there was a heavy sell off in banks with Citigroup and Morgan Stanley the heaviest fallers, as investors moved back into safe haven areas such as US treasuries. Morgan Stanley declined 8% to $16.23, while Citigroup fell 7.7% to $29.17.
The Dow Jones index lost 2.48% or 297 points to end trading at 11,657, while the S&P 500 fell 2.79% or 35 points to 1,218. The financial sector of the S&P 500 fell 4.7% as yields on Italian bonds soared to all time highs since the creation of the Euro.
The Vix volatility index also rose 18.6% to close above 35.
Overnight in Asia, the Nikkei hit a three week low, slipping 2.2% to end the session at 8,640.42.
However, on a brighter note the FTSE 100 has opened up in early trade, rising 0.47% or 25 points to 5,447, as investors take advantage of the heavy falls in the previous two sessions.
Standard Chartered, the UK's recond largest bank, also announced this morning it has posted high single digit revenue growth for the first nine months of the year.
The stock has opened flat in early trading, down 0.04% or 0.5p to £14.38.
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress