The ripple effect of S&P’s credit rating downgrade of the US is now being felt in the first wave of open stock markets. All across the Mideast, stock markets tumbled sharply. Tel Aviv fell 7%, despite circuit breakers delaying the opening by an hour.
TEL AVIV, Aug 7 (Reuters) – Tel Aviv shares closed nearly 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 late on Friday cut the U.S. long-term credit rating by a notch to AA-plus from AAA due to concerns about the country’s budget and climbing debt burden.
The TA-25 .TA25 blue-chip index closed down 6.99 percent to 1,074.27 points and is down 18 percent since the start of the year. The broader TA-100 .TA100 slid 7.2 percent.
The Obama Boom is spreading through the world! Asian markets will be opening in a few hours.
Tags: Tel Aviv Stock Exchange, The Obama Boom, The Obama Depression
