Five Things to Know Before the Market Opens
The trading day on Wall Street is expected to open with a positive trend following yesterday's gains in tech giants. Asian markets are seeing declines, while investors await reports from AMD and SpaceX.
Trading review: current reports, trends, indices, stock prices, bonds, currency, commodities, and analyst recommendations. 8:30.
1. Stock Market
The trading day is expected to open with a positive trend following the sharp gains recorded yesterday on Wall Street, led by tech giants. Dual-listed stocks are expected to return with a positive arbitrage gap of about 0.8%, with dual-listed chip stocks Tower, Camtek, and Nova standing out positively, with gains of about 7.4%, 4.8%, and 2%, respectively. Palo Alto will climb by about 3%, although it has not yet been included in the exchange's leading indices (it will be included this coming Thursday).
This morning in Asia, there are mainly price declines. The Nikkei is down about 0.3%, the Hang Seng is losing about 0.7%, the Shanghai Stock Exchange is up about 0.3%, and the Seoul Stock Exchange is losing about 1.2%. SK Hynix and Samsung shares are both down about 4%. This is a continuation of the negative momentum recorded yesterday among chip stocks, as the sector also struggled to rise yesterday in Wall Street trading. At the same time, futures on Wall Street are recording slight gains of up to 0.3%, so if this trend remains, the Dow Jones and S&P 500 will open the day in record territory.
The trading week in Tel Aviv opened with price declines, against the backdrop of the cancellation of the planned American attack against Iran and the weakness recorded in chip stocks abroad ahead of the market close. The TA-35 index lost about 0.9% and the TA-90 index fell by about 1.3%. The negative trend was led by the biomed sector and the construction index, which fell by about 2.5% each, alongside the cleantech sector, which closed with a decline of about 2.2%.
2. Bond Markets
Long-term US government bond yields (10 years) have been climbing recently, and Meitav's chief economist, Alex Zabezhinsky, notes that "unlike the close connection that characterized the last few years between inflation expectations and long-term yields, the recent rise in yields occurred when inflation expectations for ten years remained at a relatively low level." Zabezhinsky offers explanations for the anomaly: weakness in US government bond purchases and a decline in speculative transactions by hedge funds in the US in the field. He also mentions pressure from Japanese investors. Therefore, according to him, "at their current levels, yields are attractive."
