Tel Aviv Stock Exchange Braces for Mixed Global Markets, Tower Semiconductor in Focus
Translated & summarized from Ice by baba
The Tel Aviv Stock Exchange is expected to open with mixed global signals, including Wall Street gains, Asian weakness, and rising oil prices. Investors are reacting to the Bank of Israel's decision to keep interest rates at 3.25%, pausing monetary easing due to inflation, currency, and geopolitical concerns. Tower Semiconductor, Partner, and Tomer Food are among the stocks in focus today. U.S. jobless claims and economic sentiment data are upcoming.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange faces mixed global markets ahead of Thursday's opening.
- Bank of Israel holds interest rates at 3.25%, pausing monetary easing.
- Tower Semiconductor is a focus after yesterday's volatile trading.
- Wall Street closed higher Wednesday, but futures indicate a weaker open.
- Asian markets showed weakness on Thursday morning.
The Tel Aviv Stock Exchange is set to open on Thursday amidst a complex global economic landscape, with Wall Street closing higher, Asian markets showing weakness, and oil prices rising again. Investors in Israel will be digesting the Bank of Israel's decision to maintain the interest rate at 3.25%, alongside a continued recovery in secondary stocks.
On Wednesday, Wall Street saw gains, with the Nasdaq up 1.05%, the Dow Jones by 0.69%, and the S&P 500 by 0.58%. Technology stocks led the rally, boosted by corporate earnings and a rebound in artificial intelligence-related shares. SpaceX was a notable performer following its reports and potential merger talks with Tesla, while Netflix declined after its earnings release. Gains moderated towards the close due to reports of U.S. preparations to evacuate diplomats from the Gulf. However, futures trading for Thursday indicated declines, with the S&P 500 down 0.7%, the Dow Jones by 0.3%, and the Nasdaq by 1.3%.
Asian markets experienced weakness this morning, with Japan's Nikkei down 0.4%, Kospi losing over 1%, and the MSCI Asia-Pacific ex-Japan index retreating 0.2%. In arbitrage, Tower Semiconductor showed a positive gap of 1.63% and Teva a positive gap of 0.88%, theoretically adding 0.19% to the TA-35 index. Yesterday, the TA-35 closed down 0.05%, while the TA-90 strengthened by approximately 1.5%. Construction, real estate, and cleantech indices rose about 2%, despite the unchanged interest rate.
Tower Semiconductor will be a key focus after falling 3.39% in Tel Aviv yesterday and recovering 3.14% in New York. Investors will also monitor Partner, following court approval for a NIS 500 million distribution, and Tomer Food, which plummeted about 15% upon resuming trading after financial report revisions and management changes.
Later today, weekly U.S. jobless claims will be released. Towards the end of the week, attention will shift to Purchasing Managers' Index data and the final consumer sentiment estimate, which could influence U.S. interest rate expectations.
The Bank of Israel's decision to hold the interest rate at 3.25% signals a pause in monetary easing after three consecutive cuts. This means the interest rate on prime-rate loans and mortgages will remain unchanged at 4.75%, offering no immediate relief on debt repayments. Real estate companies and businesses reliant on bank financing will also have to wait for lower credit costs. The central bank's message, despite low inflation of 1.6% annually, is one of caution due to a weakening shekel, fears of renewed fuel price hikes, and geopolitical risks.
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