Developing: Israeli Stock Exchange Down 7%

The Tel Aviv stock exchange has fallen 7% in Sunday trading on word of the United States credit downgrade. The US and Israel are close economically and the ripple effects appear to be stark. An equivalent decrease of the Dow would be about 800 points.

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.

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.

Japanese markets open at 8pm EST.

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