Global Market Sell-Off Sparks Concern for Tel Aviv Stock Exchange Opening
Translated & summarized from Calcalist by baba
The Tel Aviv Stock Exchange anticipates a difficult opening session due to sharp declines in Asian markets and a significant drop on Wall Street, triggered by higher-than-expected U.S. inflation data. Asian markets saw major indices fall, with tech stocks leading the decline amid fears of further Federal Reserve interest rate hikes. This global market downturn follows a positive trading day for the Tel Aviv exchange, which had closed Tuesday with gains.
The story in 6 lines · by baba
- Asian markets plunged, with Seoul down 8% and Tokyo losing 5% after U.S. inflation data.
- U.S. inflation rose unexpectedly, increasing fears of further Federal Reserve interest rate hikes.
- Major tech companies like SK Hynix, Samsung, and SoftBank saw significant stock price drops.
- The Nasdaq Composite closed down 1.9% on Tuesday.
- The Tel Aviv Stock Exchange had closed Tuesday with gains, but faces uncertainty.
- Companies reliant on U.S. borrowing, like clean-tech firms, are particularly vulnerable.
The Tel Aviv Stock Exchange is bracing for a potentially turbulent opening following significant drops in Asian markets and a sharp decline on Wall Street, driven by unexpectedly high U.S. inflation data. South Korea's Seoul Composite index plummeted 8% and Japan's Nikkei 225 lost 5% in morning trading. The sell-off in Asian tech stocks intensified after the U.S. Consumer Price Index for September rose faster than anticipated, fueling fears of further interest rate hikes by the Federal Reserve and impacting investments in artificial intelligence. Major tech firms like South Korea's SK Hynix and Samsung saw their stock prices fall by 11% and 10% respectively, while Japan's SoftBank Group dropped 10%. On Tuesday, the Nasdaq Composite closed down 1.9%. This global downturn contrasts with the Tel Aviv market's performance on Tuesday, which saw the TA-35 index rise 0.8% and the TA-125 index gain 0.6%, extending a streak of gains. However, the surprise U.S. inflation figures are expected to influence trading locally, particularly affecting companies like Doral, which had previously surged but closed with a more modest 2% gain. The clean-tech index, which had risen 0.9%, is also vulnerable due to its reliance on U.S. borrowing and the increased likelihood of further interest rate hikes.
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