Tel Aviv stocks fall 7 pct after U.S. debt downgrade

Tel Aviv blue chip index closes down 7 pct after delayed opening

Market fears another global recession

Circuit breakers used for first time since 2008 (Adds closing prices, bond prices, cenbank/finance ministry statement)

Reuters -

Tel Aviv shares closed 7 percent lower on Sunday in the first response of a developed market to Standard & Poor's downgrade of the United States' credit rating that has sparked fears of another global recession.

The Israeli market along with a few emerging markets in the Middle East were the first to trade after S&P on Friday cut the U.S. long-term credit rating by a notch to AA-plus from AAA due to concerns about the nation's budget and climbing debt burden.

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