Stock exchanges shut down after crashes

NEW YORK -- The nation's securities markets shut down and New York's financial district was left in chaos Tuesday by the terrorist attack that devastated the World Trade Center. \nThe New York Stock Exchange, American Stock Exchange and Nasdaq Stock Market planned to remain closed at least through Wednesday. Analysts were divided on the effect the attacks would have when trading resumes. \nThe shutdown on the NYSE, the nation's oldest exchange, was the longest since the market closed for two days at the end of World War II. The NYSE's longest closing was nearly four months during World War I. \nThe trade center is a few blocks from the NYSE in the area known as the Financial District, home to dozens of investment houses and brokerages. Its twin 110-story towers, among the tallest skyscrapers in the world and a distinctive part of the city's skyline, collapsed after two hijacked jetliners crashed into them, scattering debris throughout the area. \nThe New York Mercantile Exchange, where energy futures are traded, is in the nearby World Financial Center, which was not directly hit in the plane assault. \nIn Europe, stocks closed sharply lower and panic buying caused oil and gold prices to soar as investors looked for the safest, least risky places possible to place their cash. Bond prices also moved higher. The U.S. dollar, meanwhile, fell against other foreign currencies. \n"This attack was an overt attempt to disrupt the financial system. But a lot of how the U.S. market reacts will probably depend on how long it stays shut," said Richard Dickson, technical analyst at Hilliard Lyons. \nIf the shutdown is brief, there might be some initial selling when trading resumed, Dickson said, but "things would stabilize pretty quickly." \nHowever, Brian Belski, fundamental market strategist at US Bancorp Piper Jaffray, cautioned against making too many assumptions, noting that "the market is very reactive right now, and it's never seen anything like what just happened." \nLonger term, other economists worried that billions of dollars in lost business because of the attacks could further jeopardize companies already struggling and tip the fragile U.S. economy into recession. \n"The attack will hurt (consumer) confidence and economic growth will suffer," said Sung Won Sohn, chief economist at Wells Fargo. \nThe Federal Reserve said it was ready to provide additional money to banks if needed, a step designed to reassure Americans that the nation's financial system was still working. \nTo most market watchers, financial concerns were secondary to thoughts about the thousands feared killed. \n"I am broken up by this. I have a lot of friends up there," said Dickson, the Hilliard Lyons analyst. "I'm sort of sitting on the edge of my chair." \nAbout 50,000 people worked in the World Trade Center towers and the complex. The biggest tenant was Morgan Stanley, which set up a toll-free line for people to call for information about its 3,500 workers. \nMorgan Stanley spokeswoman Diana Quintero told Dow Jones Newswires that the company was still trying to account for all of its staff. \nDetlev Rahmsdorf, a spokesman for Deutsche Bank, which also had an office in the Trade Center, said he believed all of its 300 employees had gotten out in time, although no final confirmation had been made. \n"It's just incredible disbelief to look on TV and see both towers gone. It is surreal because it is an image we have seen in the movies, but haven't considered a possibility in real life," said investment banker Lee Mirman, who was on vacation in Florida away from his office on the 87th floor of the World Trade Center. \n"It is hard to find the words to describe the extraordinary destruction and the magnitude of suffering that must be going on. ... It doesn't seem real"