US market shutdown the first since September 11, 2001
The NYSE and NASDAQ have suspended trading today as Hurricane Sandy brings 70-mile-an-hour winds and the threat of widespread flooding to the populous northeastern coast of the US.
The suspension, the first such closure due to an impending storm since the mid-1980s and the first market-wide shut down since September 11, 2001, may extend into Tuesday as Hurricane Sandy threatens storm surges, heavy rains and flooding through much of the financial center of the US. The storm may coincide with high tide, bringing flooding to areas not normally prone to hurricane damage.
‘In consultation with other exchanges and market participants, NYSE Euronext will close its markets on Monday, October 29, 2012 and, pending confirmation, on Tuesday, October 30, 2012,’ the NYSE writes in a news release.
‘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.’
New York Mayor Michael Bloomberg ordered the evacuation of around 375,000 people from low-lying coastal areas amid the approach of the hurricane, which stretches out more than 600 kilometers from the eye of the storm and could directly affect more than 50 mn people.
‘The combination of an extremely dangerous storm surge and the tide will cause normally dry areas near the coast to be flooded by rising waters,’ warns the National Hurricane Center in a bulletin. ‘The water could reach the following depths above ground if the peak surge occurs at the time of high tide: New York Harbor, six to 11 feet; lower Chesapeake Bay, two to four feet.’
The New York subway system was shut down on Sunday, school was cancelled in Washington and Boston, and residents of the Northeast undertook frenzied last-minute searches for food, flashlights and other emergency supplies to prepare for landfall.
Major companies including PepsiCo, AT&T, Macy’s and most banks closed headquarters or offices in the northeastern US in preparation for the storm while communities throughout the region – from North Carolina to southeastern Canada – declared emergencies and kept emergency workers on standby.
