Global financial markets have been hit after Italian Prime Minister Matteo Renzi lost the constitutional reform referendum. Analysts say investors are holding back because of the uncertainties.

“There is a lot of uncertainty in international markets like the referendum in Italy and we don't know whether the EU is going to break up or not, now then in the U.S. very clearly the interest rate will hike next week. So there is too much uncertainty, and everybody is holding back, right now cash is the king,” said Francis Lun, CEO, GEO Securities Limited.

The euro slumped as much as 1.4 percent to U.S.$1.0505 on Monday. It was a 20-month low, and the drop was the sharpest fall since June.

Stock markets in Tokyo, Hong Kong and Seoul also opened down. Investors and Europe’s politicians fear victory for the opposition “No” camp could cause political instability in the euro zone’s third biggest economy and renewed turmoil for the country’s shaky banking sector.