Mixed Opening Expected in Tel Aviv as Dual-Listed Stocks Weigh on TA-35 Index

The Tel Aviv Stock Exchange is expected to open relatively stable, though arbitrage gaps in dual-listed stocks are likely to drag the TA-35 index down by approximately 0.41%. Notably, Palo Alto is anticipated to open with a negative gap exceeding 2%, while chip sector stocks Tower Semiconductor and Camtek face declines of up to 1.7%. On Thursday, the market closed mixed, with the TA-35 index falling about 0.3% and the TA-90 index rising roughly 0.7%. The cleantech index led gains, climbing 2.4%, driven by Doral Energy and Nofar Energy following strong financial results. Doral reported a 55% revenue increase and nearly eliminated its net loss, while Nofar posted double-digit revenue growth and a net profit of around 16 million shekels compared to a 45 million shekel loss last year. IDI also stood out positively after its earnings report. Conversely, the banking index fell about 1.3%, with financial and insurance sectors also declining around 0.8%.

In the US, futures markets show slight gains this morning, with the Dow Jones and S&P 500 stable and the Nasdaq up about 0.2%. Asian markets are mixed, with Japan's Nikkei down 0.5%, South Korea's Kospi up 1.3%, and Hong Kong's Hang Seng rising 0.7%. US Treasury yields rose disappointingly yesterday, with the 30-year yield increasing 6 basis points to 5.25% and the 10-year yield up 5 basis points to 4.7%. Meanwhile, Israel's local bond market saw yields decline across the government yield curve, including a 5 basis point drop to 3.81% on 10-year bonds, following the Finance Minister's decision to increase bond purchases. However, concerns remain about the US national debt exceeding $40 trillion, limiting prospects for sustained lower borrowing costs.

The Israeli shekel strengthened against the US dollar, trading near 3.00 shekels per dollar. Oil prices eased slightly after rising amid US-Iran tensions, with US crude at about $86 per barrel and Brent crude at $92.3. Cryptocurrencies continued to climb, supported by US President Donald Trump's call for congressional support of the sector; Bitcoin rose 8.2% to around $75,000 and Ethereum jumped over 5% to $2,350.

According to Bank of America’s review of emerging markets, Israel’s economy shows resilience despite geopolitical uncertainty. The second quarter of 2026 saw strong recovery driven by private consumption, investments, and exports. The labor market remains tight with a low 2.9% unemployment rate and annual wage growth near 7%, creating local cost pressures. Inflation remains subdued at 1.5% year-over-year in July. The bank expects the Bank of Israel to keep interest rates steady in September and reduce them by 25 basis points in November unless the shekel strengthens significantly beforehand.