Markets Await Tel Aviv Open as Oil Slips and Global Sentiment Improves

Tel Aviv stocks are set to open later this morning, after a mixed Wall Street session and as oil prices continue to fall. The Dow Jones rose 0.4% overnight, while the S&P 500 slipped 0.1% and the Nasdaq fell 0.4%. Teva is returning to the market with a positive arbitrage gap of 2.2%.

A sharp late rally in Micron, which jumped nearly 16% after reporting results, is lifting chip stocks in Asia and pushing Nasdaq futures up 1.8%. Tokyo is up 4.2% and Seoul is surging 5.5%. US Treasury yields also declined, with the 10-year falling 8 basis points to 4.41%, the 30-year dropping 8 basis points to 4.86%, and the 2-year easing 5 basis points to 4.15%, reflecting market expectations for Federal Reserve rates. In Israel, the 10-year government bond yield stands at 3.67% this morning, after a 5 basis point decline yesterday.

Energy shares may face pressure after Brent crude fell 1.7% and WTI dropped 1.4%, following roughly 4% losses yesterday. The Tel Aviv market closed yesterday with modest gains, as the TA-35 rose 0.2%, the TA-125 gained 0.3%, and the TA Banks index advanced 0.6%.

Real estate and insurance shares were among the strongest, with the real estate index up 1.4% and insurance up 2.8%. Menora climbed 4.6% and Harel rose 3.4%, while in real estate Mega Or gained 4.6% and Melisron added 3%. On the losing side, Globrands plunged 46% after losing its most important tobacco distribution franchise to Diplomat, which surged 10.9%. Globrands extended its losing streak to 17 straight sessions and ended with a market value of 151.8 million shekels. Home ultrasound maker Pulsanasosher jumped 225.4% to a market value of 214.5 million shekels after signing an agreement with a US company that provides remote medical services.