US Treasury Secretary Jack Lew aimed to reassure skittish financial markets Friday in the wake of uncertainty stemming from Britain's referendum to leave the European Union.
"The people of the United Kingdom have spoken and we respect their decision," Lew said in a statement. "We will work closely with both London and Brussels and our international partners to ensure continued economic stability, security, and prosperity in Europe and beyond."
Lew emphasized that the US Treasury Department continues to monitor developments in financial markets.
"I have been in regular contact in recent weeks with my counterparts and financial market participants in the UK, EU and globally and we are continuing to consult closely," he said, adding: "The UK and other policymakers have the tools necessary to support financial stability, which is key to economic growth."
Lew's remarks came shortly after all US equity markets opened sharply lower -- the Dow down more than 400 points at 1420 GMT, NASDAQ down more than 130, and S&P 500 down nearly 50.
GOLD SOARS ON BREXIT SHOCK
Reflecting its reputation as a safe haven asset, gold prices surged 8%, or more than $100, to a 2.5-year high of $1,359/oz overnight on the UK's decision to leave the EU, before easing to $1,320/oz at 1130 GMT.
"The market was completely unprepared for the UK voting to leave the EU," Saxo Bank's head of commodity strategy Ole Hansen said Friday morning.
The London Bullion Market Association Gold Price settled at $1,313.85/oz Friday morning, up $51.70 from Thursday's close.
G7 MINISTERS AIM TO CALM
Just ahead of Lew's statement, ministers and central bank governors for the US, Canada, France, Germany, Italy, Japan, and the UK -- the G7 -- also sought to soothe markets, indicating they were monitoring developments, while acknowledging respect for "the intention expressed today by the people of the United Kingdom to exit from the European Union."
"We affirm our assessment that the UK economy and financial sector remain resilient and are confident that the UK authorities are well-positioned to address the consequences of the referendum outcome," the G7's statement noted.
"We recognize that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. G7 central banks have taken steps to ensure adequate liquidity and to support the functioning of markets. We stand ready to use the established liquidity instruments to that end."
