Europe

Italy hit by market volatility after referendum defeat

  • A map of Italy hangs on a wall near a voting booth at a polling station in Rome, Sunday, Dec. 4, 2016. Italian Premier Matteo Renzi acknowledged defeat in a constitutional referendum and announced he would resign on Monday. Italians voted Sunday in a referendum on constitutional reforms that Premier Matteo Renzi has staked his political future on. (AP Photo/Gregorio Borgia)

    A map of Italy hangs on a wall near a voting booth at a polling station in Rome, Sunday, Dec. 4, 2016. Italian Premier Matteo Renzi acknowledged defeat in a constitutional referendum and announced he would resign on Monday. Italians voted Sunday in a referendum on constitutional reforms that Premier Matteo Renzi has staked his political future on. (AP Photo/Gregorio Borgia)  (The Associated Press)

  • Italian Premier Matteo Renzi speaks during a press conference at the premier's office Chigi Palace in Rome, early Monday, Dec. 5, 2016. Renzi acknowledged defeat in a constitutional referendum and announced he will resign on Monday. Italians voted Sunday in a referendum on constitutional reforms that Premier Matteo Renzi has staked his political future on. (AP Photo/Gregorio Borgia)

    Italian Premier Matteo Renzi speaks during a press conference at the premier's office Chigi Palace in Rome, early Monday, Dec. 5, 2016. Renzi acknowledged defeat in a constitutional referendum and announced he will resign on Monday. Italians voted Sunday in a referendum on constitutional reforms that Premier Matteo Renzi has staked his political future on. (AP Photo/Gregorio Borgia)  (The Associated Press)

  • 5-Star Movement's Alessandro Di Battista attends a press conference in Rome, early Monday, Dec. 5, 2016, following Italian Premier's Matteo Renzi announcement he will resign Monday after losing in a constitutional referendum his government had proposed and that Renzi had staked his political future on. The 5-Star Movement had opposed the reforms proposed with the referendum. (Angelo Carconi/ANSA via AP)

    5-Star Movement's Alessandro Di Battista attends a press conference in Rome, early Monday, Dec. 5, 2016, following Italian Premier's Matteo Renzi announcement he will resign Monday after losing in a constitutional referendum his government had proposed and that Renzi had staked his political future on. The 5-Star Movement had opposed the reforms proposed with the referendum. (Angelo Carconi/ANSA via AP)  (The Associated Press)

Italy was plunged into political and economic uncertainty following voters' resounding rebuke of Premier Matteo Renzi's proposed constitutional reforms.

Renzi announced he would quit following Sunday's referendum vote, in which 60 percent of voters rejected his reforms and signaled they wanted a change in political direction. Renzi is expected to hand in his resignation to President Sergio Mattarella later Monday.

The Milan Stock Exchange opened down 2 percent, but many bank shares were suspended due to excessive volatility meaning the hit could be even deeper.

The results hit Italy's sovereign debt, increasing the spread on Italy's 10-year bonds to 2 percent, from 1.7 percent on Dec. 1 and a record low of just over 1 percent last March and April.