Tel Aviv Stock Exchange Set to Open Higher Amid Global Market Gains
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange is poised for a higher opening, influenced by strong global markets driven by SpaceX's revenue surge and positive AI stock sentiment. Bank of Israel is expected to maintain its interest rate today, with attention on its future economic forecasts. Oil prices rose above $110 per barrel amid supply concerns, while dual-listed Israeli stocks like Tower Semiconductor are anticipated to open lower. Global markets saw gains in Asia and positive futures in the U.S., with SpaceX's strong earnings report being a key driver.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange expected to open higher, following global market gains.
- SpaceX's 161% revenue growth boosted AI stock sentiment worldwide.
- Bank of Israel likely to keep interest rates unchanged today.
- Oil prices surpassed $110 per barrel due to Strait of Hormuz threats.
- Tower Semiconductor shares may fall due to negative competition analysis.
- U.S. housing market shows signs of slowdown with falling sales and starts.
The Tel Aviv Stock Exchange is expected to open higher on Thursday, mirroring positive trends in Asian markets and New York futures. Global markets received a boost from SpaceX's strong third-quarter earnings, which saw revenues surge by 161%, improving sentiment towards AI stocks. Super Micro Computer's optimistic forecast also eased investor concerns about companies' ability to sustain AI infrastructure investments.
Bank of Israel is anticipated to hold its interest rate steady later today, with market focus on the bank's future projections. Meanwhile, oil prices climbed due to attacks on vessels in the Strait of Hormuz threatening supply, and a further drop in U.S. inventories. Brent crude surpassed $110 per barrel.
Dual-listed Israeli companies are expected to weigh on the opening, particularly Tower Semiconductor, which is returning to Tel Aviv with a significant negative arbitrage gap of around 5%. Other dual stocks like Teva, Elbit, Nice, and ICL are also predicted to decline. Tower's stock fell nearly 9% on Wall Street yesterday, potentially due to a negative analysis from SemiAnalysis warning of increased competition in Silicon Photonics.
Yesterday, the Tel Aviv Stock Exchange closed with gains, with the TA-35 index rising a marginal 0.2% and the TA-90 index jumping 1.4%. The construction sector led the gains, rising 2.9%, followed by communication, software, insurance, and finance sectors. The oil and gas sector, however, lost 0.6%.
In other news, Israel Canada's stock rose nearly 5% on its merger deal with Acro. Israel Shipyards continued its upward trend amid reports of a major deal with Cyprus valued at over $100 million. Ein Shlishit surged after signing two binding memorandums of understanding with U.S.-based Aelyon. Generation Capital completed a successful NIS 1.16 billion debt offering, and Shapir Engineering sold its full holdings in the gas company Super Energy.
Globally, South Korea's KOSPI index jumped 4.3%, and Japan's Nikkei 225 rose 1.6%. U.S. stock futures showed positive movement. SpaceX's stock surged post-market after its revenue growth announcement, with CEO Elon Musk suggesting a merger with Tesla could be a "good idea." Tesla is set to release its third-quarter results today.
U.S. Treasury yields declined as investors assessed new economic data and inflation pressures ahead of the Federal Reserve's interest rate decision next week. Housing market data showed a significant drop in pending home sales and housing starts in September, indicating a slowdown due to rising mortgage rates.
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