US bonds started trading yesterday after a two-day halt caused by the worst terrorist attack in the country's history. Trading in US stocks will take at least one more day to resume.
Bond firms will be open from 8am to 2pm New York time under a recommendation by the Bond Market Association, an industry group, people familiar with the situation said. The decision followed talks with the Securities and Exchange Commission, the Federal Reserve and the US Treasury, the people said.
Stock markets may resume trading Friday and will open Monday, New York Stock Exchange Chairman Richard Grasso said.
The NYSE and NASDAQ Stock Market, where US$90 billion of shares trade on an average day, met with the SEC, brokerages and New York City officials to decide whether to open. The Big Board and the American Stock Exchange are in an area south of Manhattan's 14th Street that Mayor Rudolph Giuliani closed to civilians.
The SEC and the markets are "doing everything to make it possible" for trading to resume, SEC Chairman Harvey Pitt said.
The Chicago Board of Trade and the Chicago Mercantile Exchange will open tomorrow, except in futures and options contracts linked to stock indexes. The Chicago Board Options Exchange will be closed tomorrow.
Markets closed yesterday, as did many corporate offices, after terrorists hijacked four commercial jets and destroyed both of the World Trade Center's 110-story towers and a nearby 47-story building. The NYSE and NASDAQ never opened yesterday.
US stocks and bonds didn't trade today in Europe. Euronext NV, a combination of the Paris, Brussels and Amsterdam exchanges, said it would resume US stock trading once the Big Board opens.
Deutsche Boerse AG, owner of the Frankfurt exchange, said it would wait until at least Friday.
Treasury securities are poised to rise when bond trading opens. "Shorter-term securities -- up to five-year notes -- will benefit the most,'' said Barry Evans, who oversees US$10 billion at John Hancock Funds in Boston.
Share prices are likely to decline as they did in European, Asian and Latin American markets following the attack, investors said. "Certainly stocks will trade down," said Robert Turner, chief investment officer at Turner Investment Partners, which manages US$10 billion in Berwyn, Pennsylvania.
Lehman Brothers Holdings Inc, based across the street from the site of the World Trade Center, told some people to report to offices in Jersey City, New Jersey. Goldman Sachs Group Inc told some to stay home.
Morgan Stanley Dean Witter & Co told employees to come "on a case-by-case basis," said Judy Hitchen, a company spokeswoman.
Morgan Stanley had 3,500 people working at the Trade Center, and Chairman Philip Purcell said the "vast majority" of them had survived the attack.
Disruptions weren't limited to financial companies. Midway Airlines Corp, a Raleigh, North Carolina-based company operating under bankruptcy protection, shut down and fired 1,700 workers.
Midway said it expected demand for air travel to plunge.
Philip Morris Cos, the largest maker of cigarettes, closed all offices in the New York metropolitan area today after keeping its headquarters in the city open yesterday. General Mills Inc., the maker of cereals such as Cheerios, postponed the scheduled release of fiscal first-quarter results.
On the other hand, Oracle Corp expects to release fiscal first-quarter earnings tomorrow as planned. The third-largest software company lost an employee on a hijacked plane, and others were working in the Trade Center.
"We have to stay on the job," Chief Executive Larry Ellison said. "We cannot let these terrorists shut us down. Not the US, not Oracle."
The last time that US stock trading was suspended for more than one session occurred in March 1933, when President Franklin Delano Roosevelt called for a nationwide bank holiday. The NYSE halted trading for 10 days, according to its Web site. Trading also stopped for more than four months after World War I erupted in 1914, according to the exchange.
European exchanges were open today, and some observed one minute of silence at 8:45am New York time to commemorate the attack's victims.
The FTSE 100 in London gained 2.9 percent, the German DAX rose 1.4 percent and the CAC-40 in Paris added 1.3 percent. Each benchmark index lost at least 5 percent yesterday.
Earlier, Asian stocks tumbled, especially shares of companies most dependent on US sales.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft