Five things to know ahead of the opening of trading on the stock exchange
Trading in Tel Aviv will open this morning against the backdrop of the escalation between the USA and Iran. Key highlights: sharp declines in Asia, the expiration of the Generation fund's exclusivity deal with Shikun & Binui, and new tariffs imposed by Trump.
Trading review: current reports, trends, indices, stock prices, bonds, foreign currency, commodities, and analyst recommendations. 08:00.
1. Stock Market
After a one-day break (Tisha B'Av), trading on the local stock exchange will resume this morning. Local investors hope to continue the positive momentum from the beginning of the week, but it is expected that the market will struggle at the opening following the security escalation between the USA and Iran, which has dragged down global markets. These were already negatively affected by tech giant reports and rising oil prices, which in turn led to the strengthening of the dollar and the weakening of the shekel.
The USA attacked Iran last night, and Iran, for its part, threatens to attack Tel Aviv. This morning, global screens remain red: in Asia, the Tokyo Stock Exchange is falling by about 3%, Hong Kong and China by about 1%, and South Korea by 5%. On Wall Street, futures are stable for now after yesterday's sharp declines. It is possible that the market will draw encouragement from Intel's quarterly report, which surprised to the upside.
Dual-listed stocks are returning with mixed arbitrage gaps: Tower will jump by about 5% at the opening, Elbit with a positive gap of 1.5% after yesterday's gains in defense stocks on Wall Street; on the other hand, Camtek and Nova will see negative gaps of 1%-2%, while Teva, Nice, Enlight, and ICL will also weigh on the opening. Palo Alto, which is still outside the indices, will fall by 3.5%.
Is Trump's trade war returning? Last night it was reported that the USA will impose tariffs of 10%-12.5% on imports from most of its major trading partners. The new tariffs follow an investigation that determined that about 60 countries have not taken sufficient steps to prevent the use of forced labor in their supply chains. Countries found to have adopted restrictions on forced labor — including Mexico, the UK, Canada, and India — will be subject to a 10% tariff on exports to the USA.
Today, the exclusivity agreement between the Generation fund and Shikun & Binui for the acquisition of their energy arm (Shikun & Binui Energy) will expire. According to estimates, the negotiations are in the final stretch. Several real estate companies will be in focus today after the Ministry of Environmental Protection revealed for the first time nine plots where pollutants were found; a Globes check reveals that residential projects of leading real estate companies are planned on all of them, including Damari, Perushovsky, and Shikun & Binui.
2. Bond Market
US government bond yields are at a peak of about a year and a half against the backdrop of the jump in oil prices. The 10-year bond yield, which serves as the main benchmark for financing costs in the USA, rose by 5 basis points to 4.7%, touching its highest level since January 2025. The 2-year bond yield rose to 4.343%, while the 30-year bond yield climbed to 5.188%.
3. Commodities and Currency Market
The shekel weakened this week against the dollar. Since the end of May, when the dollar exchange rate was at a low of 2.81 shekels, the dollar has strengthened by more than 9% to about 3.07 shekels. The dollar index is rising by 0.3% and is on its way to its strongest week in a month. The price of Brent crude oil crossed the $100 per barrel threshold for the first time in two months after the Houthis in Yemen claimed they attacked two Saudi oil tankers in the Red Sea.
4. Macro
Yesterday, the European Central Bank (ECB) left the interest rate unchanged: the deposit rate remained at 2.25%, the rate on main financing operations at 2.4%, and the rate on the marginal lending facility at 2.65%. Next Wednesday, the Fed's interest rate decision will be published.
5. Forecast
Bank of America published a review of the chip equipment sector, noting that stocks of small and medium-sized companies like Nova and Camtek are trading at an exceptional discount compared to large companies, despite having the same growth engines. Their target price for Nova is $612, and for Camtek, it is $200.
