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View Full Version : Economics Tel Aviv Stock Exchange opens with 6% losses. Suspends trading in Israel


teedubya
08-07-2011, 04:16 AM
The Tel Aviv Stock Exchange opened to major losses Sunday, as indices plunged by more than 6 percent, immediately prompting a series of brief suspensions in trading.

http://www.haaretz.com/news/national/tel-aviv-stock-exchange-opens-with-6-losses-as-global-crisis-felt-in-israel-1.377396

The Tel Aviv Stock Exchange opened to major losses Sunday, as indices plunged by more than 6 percent, immediately prompting a series of brief suspensions in trading.

Upon opening, the TA-25 fell 5 percent to 1,100 points; the TA-100 plunged 5.2 percent; the TA-Banking Index dropped 5.3 percent; and the TA Real-Estate 15 fell 6.4 percent.

The losses come as the international markets were left reeling by the announcement Friday that Standard & Poor’s had downgraded the U.S. credit rating for the first time in history.

Trading began for several minutes in Tel Aviv on Sunday, but suspensions began almost at once, as the bourse reverted to what has been dubbed an “English opening.”

This measure aims to curb massive swings in the indices, primarily by extending the pre-opening trading phase in order to allow investors more time, in an effort to stabilize the market.

The move by the key credit agency reflected disappointment with last week's pact hiking the U.S.-borrowing limit, which called for roughly $2 trillion in deficit cuts over the next decade. It had previously called for cuts approaching $4 trillion.

Standard & Poor's cited "difficulties in bridging the gulf between political parties" as a major reason for the downgrade to AA +, a level down from AAA. The rating agency has essentially lost faith in Washington's ability to work together to address its debt.

The downgrade, hours after markets closed on Friday, is a first for the United States since it was granted an AAA rating in 1917. S&P warned about a downgrade as far back as April. S&P said Friday the planned deficit cuts did not go far enough.

http://www.ynetnews.com/articles/0,7340,L-4105365,00.html

petegz28
08-07-2011, 10:40 AM
make that 7%

cdcox
08-07-2011, 10:48 AM
Entirely a self inflicted wound stemming out of the political process and the idea that the debt ceiling and budget cuts should be somehow linked.

But everyone said predictions of harm coming from the threat of default was just fear mongering.

This downgrade and the resulting financial consequences is political based, not financial.

We definitely needed to and still need to deal with the financial issues, but this didn't have to happen now. We chose to have it happen NOW by our political actions.

The chickens have come home to roost.

RINGLEADER
08-07-2011, 11:52 AM
Entirely a self inflicted wound stemming out of the political process and the idea that the debt ceiling and budget cuts should be somehow linked.

But everyone said predictions of harm coming from the threat of default was just fear mongering.

This downgrade and the resulting financial consequences is political based, not financial.

We definitely needed to and still need to deal with the financial issues, but this didn't have to happen now. We chose to have it happen NOW by our political actions.

The chickens have come home to roost.

Very true but it is also driven by core constiuencies that don't want to accept less than what the idiot politicians promised. Once the US realizes the real choice is not between having it all or having less but is instead between having less or having nothing this may change. Until then the Dems will demonize the GOP for wanting to kill grandma and starve kids.

Of course this also requires the Republicans to stop spending too which, until very recently, they show capacity to do either.

And we MUST get off the baseline budgeting because it bakes in the good times and doesn't anticipate (or does so very poorly) any downturns. I still think my 5-point plan or some variation would work and it would not only pay down the debt over 40 years but insure the solvency of entitlement programs.

orange
08-07-2011, 02:36 PM
Does anyone else think the fact that a quarter million Israelis were out on the streets last night demonstrating against their government's economic policies, and the fact that said government has promised big changes including monopoly-busting - that these facts might have had a little something to do with the Israeli stock market?

I know that America is the big dog in the news cycle but I can't help but believe one or two foreigners per country at least pay occasional attention to their own country from time to time.

http://www.globalpost.com/sites/default/files/imagecache/gp3_small_article/israel-protests-2011-8-6.jpg

story: http://www.ynetnews.com/articles/0,7340,L-4105195,00.html

cdcox
08-07-2011, 10:07 PM
Does anyone else think the fact that a quarter million Israelis were out on the streets last night demonstrating against their government's economic policies, and the fact that said government has promised big changes including monopoly-busting - that these facts might have had a little something to do with the Israeli stock market?

I know that America is the big dog in the news cycle but I can't help but believe one or two foreigners per country at least pay occasional attention to their own country from time to time.

http://www.globalpost.com/sites/default/files/imagecache/gp3_small_article/israel-protests-2011-8-6.jpg

story: http://www.ynetnews.com/articles/0,7340,L-4105195,00.html

Looks like Asia is all bent out of shape by the unrest in Israel too.

petegz28
08-07-2011, 10:15 PM
Looks like Asia is all bent out of shape by the unrest in Israel too.

I think so...damn Jews .....LMAO

While orange is good at rooting out the politcal stories, there are few on here I take even half seriously when it comes to the financial markets and orange unfortunately isn't one of them.

banyon, amnorix, stewie, forward dante and kc native are the ones I seem to think understand things for what they are. I am sure I have left out a person here and there but that's the core of the group I look to have good financial talks with. I don't always agree with them but them clearly have a good understanding of the markets.

orange
08-07-2011, 10:29 PM
Looks like Asia is all bent out of shape by the unrest in Israel too.

"Asia's all bent out of shape," eh? Are they down 7%? 5%? Did they have to suspend trading? Have they been down for eight or nine days consecutively now, and if so, was it all because they knew the S & P downgrade was coming?

Damn, those inscrutable Orientals are good!

petegz28
08-07-2011, 10:30 PM
"Asia's all bent out of shape," eh? Are they down 7%? 5%? Did they have to suspend trading? Have they been down for eight or nine days consecutively now, and if so, was it all because they knew the S & P downgrade was coming?

Damn, those inscrutable Orientals are good!

Hong Kong is down 4.25% at the moment. Gold is up over $47. The $ is getting raped. I am sure it is all over Israel though.

KILLER_CLOWN
08-08-2011, 12:09 AM
Globalism FTL!

orange
08-08-2011, 03:57 AM
"Asia's all bent out of shape," eh? Are they down 7%? 5%? Did they have to suspend trading? Have they been down for eight or nine days consecutively now, and if so, was it all because they knew the S & P downgrade was coming?

Damn, those inscrutable Orientals are good!

Anybody care to answer those questions?

orange
08-08-2011, 04:05 AM
p.s. Better tell those fools at Bloomberg that they don't know what they're talking about - petegz28 says so.

Israel’s benchmark stock index fellthe most in 11 years yesterday, closing just shy of so-called bear-market territory, on investor concerns with faltering global growth and protests against the domestic cost of living.

http://www.bloomberg.com/news/2011-08-07/israel-stocks-fall-most-in-11-years-on-concerns-about-global-growth-debt.html

But, of course, that was before the full brunt of S & P's downgrade came into play; today, they spiralled straight into oblivion at minus... er, make that PLUS 1.2 per cent.

And Asia seems to have finished about -2%. Just like they have the last eight, nine, ten days or so. Sorry, but it seems like the panic has been called off.

petegz28
08-08-2011, 07:15 AM
p.s. Better tell those fools at Bloomberg that they don't know what they're talking about - petegz28 says so.

Israel’s benchmark stock index fellthe most in 11 years yesterday, closing just shy of so-called bear-market territory, on investor concerns with faltering global growth and protests against the domestic cost of living.

http://www.bloomberg.com/news/2011-08-07/israel-stocks-fall-most-in-11-years-on-concerns-about-global-growth-debt.html

But, of course, that was before the full brunt of S & P's downgrade came into play; today, they spiralled straight into oblivion at minus... er, make that PLUS 1.2 per cent.

And Asia seems to have finished about -2%. Just like they have the last eight, nine, ten days or so. Sorry, but it seems like the panic has been called off.

Yeah, Bloomberg, CNBC, Fox Business, all of them rarely have the "real reason" markets go up and down. I have given several examples on this over the years where the news says one thing but the traders say another.

But keep on feeding that ego....it's what you do best. And I don't htink any said the riots and what not had nothing to do with it. But it isn't the only thing driving down their market.

From your OP....on investor concerns with faltering global growth ..yes, GLOBAL

KILLER_CLOWN
08-09-2011, 11:45 PM
More than 300,000 demonstrate across Israel to protest high cost of living

Over 300,000 people took part in third consecutive week of mass rallies across Israel on Saturday; protesters chant 'The people demand social justice'; Sources close to Netanyahu say media inflated number of protesters.

Approximatley 300,000 people gathered Saturday night in Tel Aviv, 20,000 participated in Jerusalem, 3,000 in Kiryat Shmona, 5,000 in Modi’in,1,000 in Hod Hasharon and 1,000 in Eilat. However, those close to Prime Minister Benjamin Netanyahu claimed that the media had inflated the numbers of participants in the protests.

In Tel Aviv, people marched from Habima Square, near the tent city on Rothschild Boulevard, to the Kirya defense compund on Kaplan Street.

Protesters chanted "The people demand social justice" and "An entire generation demands a future."

A number of signs that were hung on Kaplan Street read "Resign, Egypt is here."

"Young people of Israel, our time has come," said National Student Union Chairman Itzik Shmuli at the Tel Aviv rally.

This marked the third consecutive week a rally has been held in Tel Aviv. Smaller demonstrations also occurred in Ashkelon (more than 500 protesters), Dimona (around 200 protesters) and Eilat (1,000 protesters).

Around 1,000 protesters blocked the Shomrim Junction in the Jezreel Valley. The rally was held under the slogan, "The northern periphery is awakening."

Police closed Kaplan Street in Tel Aviv off to traffic early on Saturday in anticipation of the rally, and will only reopen the main avenue at 4:00 A.M. on Sunday. Several other major roads in the central part of the city were blocked during the demonstration.

http://www.haaretz.com/news/national/more-than-300-000-demonstrate-across-israel-to-protest-high-cost-of-living-1.377295