Israel's stock market opens 1.4% higher on Monday, as tensions ease
Upstox
2 min read • Updated: April 15, 2024, 4:15 PM
Summary
After facing a brutal attack from Iran on Friday night and Saturday, Israel decided to show some restraint as diplomacy kicked in at the international level. Some media reports also claim that Iran has agreed not to escalate tensions further. Following this, Israel's key Benchmark index TA-125 opened 1.4% higher on Monday.
The Global markets posted a strong correction after Iran launched missile and drone attacks on Israel on Friday. The market experts predicted the current situation could escalate further if Israel decides to respond to the recent attack. However, Israel has not yet confirmed any retaliation, and business is as usual in Israel.
Following the attacks, US markets closed nearly 1.5% lower on Friday. The Dow Jones closed with 1.2% losses, SPX with 1.4% losses and Tech heavy Nasdaq closed 1.6% lower. Taking cues from weak US markets, Japanese and other Asian markets opened lower on Monday, with losses ranging from 1% to 2%. At the same time, Chinese markets remained buoyant throughout the trading session ahead of its Key GDP data.
Easing tensions
According to media reports, Iran has decided not to escalate the situation any further, giving a breather to global markets amid turmoil in the Middle East. Israel's key benchmark Index, TA 125, opened 1.4% higher on Monday, showing normalcy in the region.
Following these key developments, global markets recouped early losses to trade higher from day lows . The European indices, too, are trading with 1% gains across the board. At the same time, Japanese and other Asian markets recovered from early morning losses.
Gold and oil show signs of easing
Gold and Crude Oil prices saw sharp gains in the past few weeks after the tensions between the two rivalries went to the next level. However, after Friday's attack, the US and other significant superpowers advised both nations to show some restraint. Gold and Crude oil prices witnessed sharp corrections from the recent top. The Gold prices reached a high of $2,431 per ounce and are currently trading at $2,350 per ounce.
The Brent crude oil prices also show signs of cooling as the prices have corrected nearly 1% to trade below the $90 per barrel mark. The prices touched the $92 barrel mark on Friday as the attack on Israel was in process.
Investors should remain cautious
The situation remains calm in the Middle East after the attack. However, experts warned that any further escalation by either party could prove to be a bigger catastrophe for the region and global trade, security and stability.