Markets brief
Tel Aviv Stocks Advance on US Rate Cut Bets as Shekel Holds Steady
Tel Aviv technology equities gain as weaker US employment data cools rate hike bets, while shekel stability supports local corporate debt markets.
Markets
Weak US employment data triggered a sharp drop in rate hike expectations — driving gains across Tel Aviv technology and semiconductor stocks.
BackgroundUS nonfarm payrolls fell by 23,000 in July, prompting Wall Street traders to rapidly lower benchmark rate expectations. Israeli dual-listed equities listed in Tel Aviv and New York trade in close alignment with broader US monetary policy shifts.
- Futures markets cut the probability of a September Fed rate increase to 44% following soft employment data, driving benchmark treasury yields lower.
- Tel Aviv's TA-35 benchmark index rose 0.5% on strong trading across semiconductor stocks including Tower Semiconductor.
- JPMorgan raised its year-end S&P 500 target to 8,000 points, citing strong corporate technology earnings beats across major dual-listed tech firms.
Markets
The shekel's stability at ₪3.00 per dollar anchors local credit markets — offsetting Middle East maritime transport uncertainty.
BackgroundThe Bank of Israel maintains its benchmark interest rate at 3.50% to balance foreign exchange stability against domestic growth. Israeli institutional investors maintain strong capital allocations in local corporate bond issues.
- The benchmark TA-125 index held around 4,065 points, preserving a 1.5% gain over the past month amid resilient local retail buying.
- TelBond 60 corporate bond index rose to 429.51 on NIS 1.1 billion in daily institutional trading volume, reflecting solid domestic credit demand.
- Currency stability near ₪3.00 per dollar helps keep imported goods inflation low across the domestic economy.
Markets
Surging gold ETF inflows signal broad institutional hedging against Middle East maritime risks and shifting interest rate trends.
BackgroundGold functions as a safe-haven asset during times of geopolitical conflict and falling sovereign interest rates. European institutional funds led global gold ETF buying throughout July as regional market volatility rose.
- Spot gold logged its strongest single-week price gain in seven months, reaching $4,354 per ounce as geopolitical risks increased.
- World Gold Council data showed $3 billion in net July ETF inflows, led by European fund managers seeking defensive allocations.
- Central bank buying provided structural demand, with China extending official gold purchases for a 21st straight month.
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