Storm keeps financial markets closed

Associated Press

NEW YORK

Stock trading will be closed in the U.S. for a second day today as Hurricane Sandy bears down on the East Coast. Bond trading also will be closed.

The last time the New York Stock Exchange was closed for weather was in 1985 because of Hurricane Gloria, and it will be the first time since 1888 that the exchange will have been closed for two consecutive days because of weather. The cause then was a blizzard that left drifts as high as 40 feet in the streets of New York City.

The New York Stock Exchange and Nasdaq said they intend to reopen Wednesday and would keep investors updated.

Much of the East Coast was at a standstill Monday as the storm approached. Mass transit and schools were closed across the region ahead of the storm’s hitting land, which happened later Monday.

Areas around New York’s Financial District were part of a mandatory evacuation zone. The storm surge was pushing water over seawalls in the southern tip of Manhattan.

CME Group’s New York trading floor was closed, but its electronic markets for commodities were functioning. Crude oil fell 74 cents to close at $85.54 in electronic trading. CME said electronic trading for commodities also would be open today.

CME said it would reopen its stock index futures trading Monday at 6 p.m. for overnight electronic trading and keep it open through 9:15 a.m. today.

Trading on interest- rate futures and options on futures including Treasurys, Eurodollar and Fed Funds were to reopen at the same time Monday night and stay open today.

Bond trading will be closed today. The Securities Industry and Financial Markets Association called for an early close to bond trading Monday, at 12 noon. The yield on the benchmark 10-year Treasury note was 1.72 percent, compared with 1.75 percent late Friday.

European stock markets fell. France’s CAC-40 fell 0.8 percent, Britain’s FTSE fell 0.2 percent and Germany’s DAX lost 0.4 percent. Insurers such as Munich Re, Aviva PLC and Zurich Insurance fared worse than other stocks as investors worried about the potential cost of the storm’s damage.

“The economic impact cannot be underestimated,” said Elsa Lignos, an analyst at RBC Capital Markets.

The uncertainty generated by the storm comes at the start of a big week in the United States.

This is the last full week before next Tuesday’s presidential election and culminates Friday with the release of monthly jobs data, which many analysts think could have an impact on the vote.

Some companies are postponing quarterly earnings reports scheduled for release early this week.

So far, that includes Pfizer Inc. and Thomson Reuters. Burger King reported on schedule, and said its third- quarter net income fell 83 percent as revenue was hurt by the stronger dollar. Adjusted results topped expectations, however.