Sunday, August 07, 2005

DEBKAfile : Why the market tanked on resignation news

TASA stocks dive 5% and dollar shoots up with announcement of Netanyahu’s resignation

August 7, 2005, 4:54 PM (GMT+02:00)

Prime minister Sharon called Bank of Israel governor Stanley Fischer to assure him that the government’s economic policy will not change under a new finance minister. The call was made after the Tel Aviv money market began plunging. DEBKAfile’s financial analyst reports the news hit stocks with the force of an earthquake.

Stocks dived 5 percent on the Tel Aviv Stock Exchange and the dollar shot up 2%. Financial market leaders fear that trading Monday will see an avalanche. The prime minister’s assurance to Fischer reduces the chances of the Labor leader, vice prime minister Shimon Peres, getting the post, as his views are diametrically opposed to Netanyahu’s.


Post a Comment

<< Home