admin
The technology-heavy Nasdaq exchange was also closed yesterday.
This is the first time in 27 years the stock markets have closed for a full day due to adverse weather.
In September 1985, Hurricane Gloria forced a market shutdown.
Hundreds of thousands of people in the city have been ordered to leave their homes as the storm approaches.
Some of New York’s financial district is in the evacuation zone and major banks such as Goldman Sachs and Citigroup have told staff not to go into work. The closure of New York’s transport system means many employees would not be able to get to work in any case.
While the New York Stock Exchange isn’t itself at risk of flooding, the concern is for the safety of those who work there. The area around the NYSE is home to some of the world’s largest banks and financial institutions and thousands of staff commute there every day. But the area also lies close to the waterfront of lower Manhattan — the area most at risk from Hurricane Sandy. With the subway and buses shutdown and the bridges and tunnels into Manhattan at high risk of closure, the financial district is effectively in lockdown.
That’s delayed the publication of corporate earnings from firms including Pfizer and the launch of Google’s new smartphone that was set to be unveiled at a glitzy ceremony in New York yesterday.
But nonetheless, in what’s set to be a busy week for economic data, the authorities pressed ahead with their publication as planned. One piece of encouraging news amid a worrying day for many — figures from the Bureau of Economic Analysis show that personal spending came in much better than expected — climbing 0.8 percent.
Duncan Niederauer, the chief executive of the NYSE’s parent company, NYSE Euronext, told the broadcaster CNBC it was “hard to imagine” that the exchange would open today.
Although US banks with London offices have effectively moved their activities temporarily from New York to London, the shutdown means fewer traders in the market.
Analysts said this meant there was little reaction to a Commerce Department report yesterday that showed consumer spending grew by a better-than-expected 0.8 percent in August.
Foreign exchange business has been handed over to London and some staff will be staying late, until
about 22:00 GMT to cover New York trading hours until the time they normally hand over to Asia.
A statement from Citigroup said it would be able to provide its normal range of services to clients: “Although our sales, trading and investment banking operations in New York City are based in an evacuation zone, we are implementing our contingency plans to ensure continuity of operations and expect to be able to fully serve our clients during this event.”
In effect, the Hurricane has prompted an unscheduled day’s holiday for US financial workers, although the more senior people will still be able to make deals should they wish to or need to.
Google has had to cancel an event in the city at which it was expected to launch its latest smartphone, the Nexus 4.
Air France, British Airways and Virgin Atlantic have also grounded all flights to East Coast cities.
The pharmaceutical giant, Pfizer, is among a number of companies that have postponed earnings reports.
“In consultation with other exchanges and market participants, NYSE Euronext will close its markets on Monday, 29 October, 2012 and pending confirmation on Tuesday, 30 October, 2012,” the exchange said.
“We support the consensus of the markets and the regulatory community that the dangerous conditions developing as a result of Hurricane Sandy will make it extremely difficult to ensure the safety of our people and communities, and safety must be our first priority.
“We will work with the industry to determine the next steps in restoring trading as soon as the situation permits.”
Nasdaq said it had made the decision to close “in consultation with other US exchanges, government officials and regulators — including the Securities and Exchange Commission.
“The continuity of our markets and a variety of factors related to Hurricane Sandy’s movement up the Eastern Seaboard were considered, including the state of emergencies declared by New York City, New York State and other state and local governments.”
The securities industry association, which represents those who trade financial products such as bonds, recommended that trading ends early.
The East Coast is bracing itself for winds of 75mph and a potential “life-threatening” flood to the Mid-Atlantic coast.
Several states have declared emergencies, with tens of millions of people affected as schools are closed and transport services suspended. — BBC
Online Reporter