North American stocks slid shortly after the open Monday, tracking global sentiment, with the TSX down nearly half a per cent, after Greek voters' rejection of austerity measures raised the risk of an exit from the euro.
The S&P/TSX composite index was off 66.81 points, or 0.46 per cent, to 14,615.58.
The Canadian dollar slipped to 79.08 cents (U.S.).
The S&P 500 fell 0.5 per cent, or 10.89 points, to 2,065.89 in New York, after losing 1.2 per cent last week. The Dow Jones industrial average lost 99.08 points, or 0.6 per cent, to 17,631.03. The Nasdaq Composite index retreated 0.5 per cent, or 24.85 points, to 4,984.36.
The Chicago Board Options Exchange Volatility Index rose 4.5 per cent to 17.55, after its biggest weekly gain since January.
"You can't escape the noise created by this situation in Greece," said Walter Todd, who oversees about $1-billion as a chief investment officer for Greenwood Capital. "I think it's going to be hard to get any real traction until we get some type of clarity."
Stock markets globally fell, but analysts said the declines were less than expected due to expectations that the European Central Bank would act to limit any damage.
A larger-than-expected 61 per cent of Greek voters chose not to accept proposals for spending cuts and tax increases. The result sent European stocks lower, while banks including JPMorgan Chase & Co. say a Greek departure from the euro is now the most likely scenario. German Chancellor Angela Merkel and counterparts across Europe must decide if a financial rescue of the region's most indebted country is still possible.
Merkel and French President Francois Hollande called for an emergency leaders' summit on Tuesday. The pair will first meet Monday evening in Paris to discuss Europe's next move.
Equity futures earlier trimmed their declines after Greek Finance Minister Yanis Varoufakis resigned, amid speculation the move may aid talks with creditors. Varoufakis said there was "a certain preference" among European creditors that he no longer be involved in negotiations.
U.S. stocks fell the most in three months last week as the escalating crisis in Greece stole attention from U.S. economic data and the U.S. Federal Reserve. The S&P 500 pared its 2015 gain to 0.9 per cent, and finished Thursday 2.5 per cent below its all- time high set in May.
The gauge suffered its biggest single-day decline of the year last Monday after Greece closed its banks and imposed capital controls. It was the first time the benchmark index moved more than 1 per cent in a week, up or down, since April.
The uncertainty in Greece overshadowed U.S. economic data that, while improving, wasn't strong enough to boost prospects for an increase in Fed interest rates. A report Thursday showed the U.S. economy added 233,000 jobs in June while wages stagnated and the size of the labour force receded.
A report later this morning by the Institute for Supply Management will indicate a recovery in the non-manufacturing sector, according to a Bloomberg survey of analysts.
With files from Reuters