European equity markets are down 30% as hurricane Sandy keeps US venues shut for a second day.
Monday trading volumes slid to €19 billion across European equity markets from a five day average of over €29 billion and a month-to-date average of €28.7 billion, according to BATS Chi-X Europe data.
The Securities Industry and Financial Markets Association (SIFMA) has recommended the closure of all US equities, bonds, options and derivatives markets for Tuesday due to severe weather caused by the hurricane.
The New York Stock Exchange (NYSE) will remain closed although fears the trading floor had flooded were quashed.
NYSE Euronext, Nasdaq OMX, Bats Global Markets and Direct Edge will all remain closed and have each stated they hoped to open on Wednesday if weather conditions allowed.
The Chicago-based CME Group opened trading in US equity index futures and options last night, alongside interest-rate futures, which will continue trading today. The IntercontinentalExchange also opened trading for its Russell equity indices last night, although its fixed-income markets were shut.
The SIFMA announcement also recommended a full close for all US dollar-denominated government securities in Tokyo and London for Wednesday.
Although the worst of the hurricane’s winds and rain, which reached 80 mph and 900 miles in width, may have passed through New York City, there are still flood dangers, with reports subways tunnels have flooded.