Tel Aviv Stock Exchange Set to Open After Sharp Wall Street Declines

Tel Aviv stocks are set to open after an evening of sharp declines on Wall Street, against the backdrop of continued tension with Iran. The Dow Jones fell 1.9% yesterday, the S&P 500 dropped 1.6%, and the Nasdaq declined 2%.

Nova and Camtek are returning to the local market this morning with negative arbitrage of 5% and 4.5%, respectively. Teva has a negative gap of 1.5%. Oil prices are rising this morning, by 1.8% for Brent and 2% for WTI. The yield on the 10-year U.S. Treasury note is up one basis point to 4.55%. The yield on the 10-year Israeli bond stands at 3.71% this morning.

The U.S. military attacked targets in Iran overnight, for the second night in a row. This followed explicit threats from President Donald Trump to strike again in the Islamic Republic overnight. The wave of attacks lasted about four hours, and at the end of it U.S. Central Command (CENTCOM) said it had struck military surveillance capabilities, communications systems and air defense sites across Iran. As yesterday, Iran responded this morning with launches toward Gulf states.

Yesterday the market closed lower. The TA-35 fell 0.9%, the TA-125 dropped 1.1%. The cleantech index fell 4.1%, the insurance index was cut 2.6%, while the oil and gas index jumped 2.5%.