Sunday, August 7, 2011

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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