Tel Aviv Stock Exchange partially recoups early losses

The Tel Aviv Stock Exchange partially recouped initial sharp losses Tuesday, as the major indices began climbing back at midday.

The market opened to news of crashing stock prices in Asian and other overseas markets, and there were fears of a huge slide in Tel Aviv as well.

The Tel Aviv 100 index was down 3.8 percent by mid-morning, but clawed upward by midday, down 2.2 percent. The Maof dropped 3.4 percent in early trading, but was down 1.8 percent close to noon. The Tel Aviv 25 went from a 3.5 percent loss to 2.4 percent, and the Tel-Tech from 3.7 percent to 2.7.

The sharpest slide was felt by the Real Estate index, which was down 5 percent. The Real Estate index has fallen 21 percent since January 1.

Shares from Sydney to London sank for a second day on Tuesday, dragging commodity prices with them and promising similar falls for Wall Street as investors abandoned assets exposed to the risk of a global economic slowdown.

European stocks tumbled more than 3 percent at the opening bell after Japan's benchmark Nikkei average lost 5.7 percent - the worst one-day loss since the session after the Sept. 11, 2001 attacks on the United States - while MSCI's measure for other Asian stocks shed more than seven percent to five-month lows.

Shanghai copper and zinc futures fell by their 4 percent daily limit as fears that the risk of a U.S. recession could eat into global growth killed the appetite for raw materials. London's Brent crude oil contract fell by $1 per barrel.

"This is a meltdown. The weakness is spreading and there is nowhere to hide outside government bonds and of course cash," MF Global analyst Edward Meir said. "But this could be the last big capitulation before prices steady - this might be a selling climax, but it could still last all week."

U.S. stock markets were set to open lower after a holiday on Monday following sharp losses in equity futures.