Tel Aviv Stock Exchange Awaits Opening After Wall Street Declines and Inflation Data

The Tel Aviv Stock Exchange (TASE) is set to open following a night of declines on Wall Street and a significant rise in oil prices. Brent crude increased by 3% and WTI by 4% on Tuesday, though a slight pullback was seen Wednesday morning. The market is also reacting to Israel's August inflation figures, released after Tuesday's trading close. The Consumer Price Index (CPI) rose by 0.7% in August, aligning with market expectations. This brings the annual inflation rate to 1.5%, similar to July's figure.

Roi Kadosh, Chief Investment Officer at Hachshara, commented that the inflation data, being in line with forecasts, had a minimal impact on trading. He anticipates that the overall economic picture remains stable, with the Bank of Israel likely to continue its measured interest rate cuts early next year, closely monitoring upcoming inflation indices, especially a projected negative September index.

In New York, the Dow Jones fell 0.6%, the S&P 500 dropped 0.5%, and the Nasdaq declined 0.8% on Tuesday. The yield on 10-year US Treasury bonds briefly surpassed 5% before receding to 4.98% on Wednesday morning. Israel's 10-year bond yield stands at 4.02%.

Tuesday's trading on the TASE concluded negatively, with sharp drops in renewable energy stocks. The TA-35 index decreased by 0.9%, and the TA-125 index fell by 1.1%. The TA Renewable Energy index was down 3.42%, and the TA-Cleantech index weakened by 3.2%. Notable decliners included Nofar Energy, which dropped 9.3%, Doral Energy losing 8%, and Enlight losing 5.5%.