Investors Pull Funds From Tel Aviv After Record Stock Rally

ilmessaggero.it (Italian) —

Funds are exiting Tel Aviv after record stock market gains, driven by uncertainty ahead of Israel's election and the US midterms. Analysts fear prolonged coalition talks in Israel and a divided US Congress could destabilize markets. The election outcome is pivotal: JP Morgan says an opposition win would strengthen the shekel, while a Netanyahu-led government could weaken it. Foreign fund ownership in Israeli securities has fallen to a historic low of 19%, according to Reuters. Despite the outflows, the Tel Aviv Stock Exchange has surged 130% since October 2023, outpacing Wall Street's 80% gain. Deutsche Bank notes any new government will maintain a hard line on Iran, with strategic differences over military action versus regime change.


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