The Israeli shekel, which previously fell to an eight-year low, is unlikely to depreciate significantly further due to the Bank of Israel’s unprecedented containment measures, Goldman Sachs strategists said. writes Bloomberg. In their opinion, the currency is supported by financial inflows from abroad.
The value of the Israeli currency has been declining for the sixth day. On October 16, it fell 0.3% to 3.9895 against the dollar. Since the beginning of the escalation of the conflict in the Middle East, it has lost more than 3%.
Israel’s dollar bonds are seeing losses, with yields on securities maturing in 2030 rising 17 basis points (bps to 5.9%). Meanwhile, stocks recovered, with the Tel Aviv Stock Exchange’s benchmark TA-35 index rising 1.4% after falling on Sunday.
Amid tensions in the Middle East, US index futures premarket on October 16 demonstrated small height. S&P 500 futures rose 0.2% to 4,365. Dow Jones Industrial Average futures rose 0.3% to 33,929. Nasdaq 100 futures added 0.1% to 15,136.
For the US stock market, the Arab-Israeli conflict is negative factor, especially for sectors sensitive to the cost of money. This was noted in a commentary to Vedomosti by Sergei Vakhrameev, head of the analysis of shares of foreign issuers at the Sinara investment bank. These include the technology, communications and durable goods sectors.
According to analysts interviewed by Vedomosti, the main beneficiaries of the situation in the Middle East may be oil companies located far from the conflict zone. Gold also has growth potential in 2024.