4-Tel Aviv stocks fall 7 pct on US debt downgrade

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UPDATE 4-Tel Aviv stocks fall 7 pct on US debt downgrade

Sun Aug 7, 2011 2:26pm EDT

By Tova Cohen

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.

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Israel's market is closed on Fridays and Saturdays.

The Tel Aviv market opening was delayed by nearly an hour as circuit breakers kicked in when shares fell more than 5 percent in pre-market trade.

The last time circuit breakers were used was on Sept. 21, 2008, after the collapse of Lehman Brothers, a stock exchange spokeswoman said.

Thank you, Blammo