Tel Aviv Stock Exchange Opens Higher Amid US Inflation Data and Nvidia Earnings Anticipation

Investors at the Tel Aviv Stock Exchange (TASE) began trading with optimism on the morning following a positive session, buoyed by gains on Wall Street despite ongoing US-Canada trade tensions and geopolitical concerns involving Iran. The market is closely watching the upcoming US inflation report and Nvidia's quarterly earnings, expected after the US market close. Dual-listed stocks showed limited movement, with Palo Alto Networks down 2% at open but JPMorgan projecting strong results and a price target increase to $384 by December 2027. Teva Pharmaceuticals, Tower Semiconductor, Camtek, and ICL traded with gains around 1%. Quarterly reports from Partner Communications and Tiv Taam were also anticipated. Insurance company Harel reported a 30% profit increase in Q2 to one billion shekels, citing growth in investment and core earnings.

The TASE 35 index rose about 0.4%, and the TASE 90 climbed 0.7%, with insurance, finance, and construction sectors leading gains. Conversely, the oil and gas index fell 1.3% amid global oil price declines. Notably, payment solutions provider Nayax surged after announcing a $350 million acquisition of US-based IPS Group. However, Smart Shooter, a recently listed smart aiming systems manufacturer, plunged following disappointing financial results. Despite recent gains, most TASE indices remain in negative territory for the month, with real estate and defense sectors showing double-digit declines.

Asian markets showed mixed performance, with Japan's Nikkei down 0.25% and Hong Kong's Hang Seng up 0.5%, led by a 3% rise in Alibaba shares after insider purchases. US futures were stable ahead of Nvidia's report. Analysts emphasize that a strong Nvidia earnings report is necessary to sustain the semiconductor sector's growth momentum. The US Consumer Price Index (PCE) inflation data, favored by the Federal Reserve, is expected to show a slight monthly increase of 0.1% and an annual rate of 3.6%, slightly down from June.

In the bond market, the 10-year US Treasury yield fell to 4.64%, influenced by reports that the US Treasury may use its general account to repurchase bonds. However, strategists at Goldman Sachs and Wells Fargo caution that these purchases may have limited impact on long-term yields. The dollar traded mixed against the shekel, settling at 2.986 shekels per dollar. Gold prices have rebounded 16% since early August, supported by weaker US economic data and increased US Treasury market interventions. Bitcoin briefly surpassed $80,000, driven by concerns over dollar debasement and renewed interest following President Trump's call for clearer digital asset regulations.

In Israel, Discount Bank's chief strategist Samuel Katzavian noted that the Bank of Israel's upcoming interest rate decision remains uncertain, with possibilities including a 0.25% cut or no change. He expects at least two rate cuts within the next year, citing historically high rates relative to inflation and growth. US macroeconomic data showed declining consumer confidence and new home sales, reflecting economic pressures ahead of the midterm elections.

Camtek's stock has fallen over 16% since mid-August amid global semiconductor sector weakness, but Bank Hapoalim analysts upgraded it to "outperform" due to improved risk-reward at current valuations. They highlighted the importance of Nvidia's upcoming earnings as a sector benchmark. The article concludes with a note on Globes' commitment to respectful and ethical discourse.