The Tel Aviv 100 Index lost 7.19% today and broke through major support levels after S&P downgraded the U.S.'s credit rating. According to Bloomberg, the Bank of Israel on August 2 lowered its 2011 and 2012 economic growth forecasts and "Finance Minister Yuval Steinitz called the downgrade a “warning sign” for Israel’s economy". You can't see it on the chart, but 1,000 was an important support level to hold (the 6/30/2010 low). TA100 closed at 972 and the trend looks down for now. Also, over the weekend 250,000 Israelis protested the high cost of living. Watch the CNN video after the jump.
|Tel-Aviv Index Courtesy of Bloomberg.com|
More markets fell in the Middle East:
Israeli Stock Index Tumbles Most Since 2000 (Bloomberg)
Dubai Shares Drop Most Since February (Bloomberg)
Saudi Shares Plunge as U.S. Downgrade Fuels Concern Over Global Economy (Bloomberg)