Following a week of volatility (see Economy Rallies Following Worldwide Slump) the stock markets suffered what may prove to be a fatal blow yesterday as attacks were made on financial and military targets in the US. The New York Stock Exchange ceased trading shortly after the crisis struck, 9am local time, and some experts believe it will not re-open this week.
This morning London’s FTSE 100 index was up 39 points at 4,785 by 12.05pm, following a volatile morning of trading which saw the market swing between gains of 135 points and a fall of 94. Restrictions were imposed on trading on the Nikkei for fear of a global collapse but trading has been reserved with most traders limiting themselves to closing open positions and carrying out customer orders.
“When something like this happens, it shakes confidence,” said Robert Hormats, vice-chairman of Goldman Sachs International. “In the short term it will weaken investor confidence in the US somewhat, but I think in the medium term people will pull together.”