The forced closure of major stock exchanges in the US could send trading volumes in Europe plunging by over a quarter and lead to the slowest trading day of the year, according to market participants, adding further woes to the region's already subdued equities market.

The New York Stock Exchange and Nasdaq said late on Sunday that they would suspend all operations today as a result of Hurricane Sandy, a tropical storm that has battered the Caribbean and has been dubbed 'Frankenstorm'. Alternative exchanges Bats Global Markets and DirectEdge also said they would suspend their US markets today.