Tel Aviv Stocks Open Lower as Elbit Rallies on European Defense Deal
The Tel Aviv Stock Exchange opened lower on Monday, mirroring Wall Street losses, while Elbit Systems surged 3.1% on a $235 million European defense contract. Meanwhile, Wall Street futures rebounded as oil prices fell.
The Tel Aviv Stock Exchange resumed trading today (Monday) with a downward trend, following Friday's losses on Wall Street and declines across several Asian markets this morning. The TA-35 index dropped 0.3%, while the TA-90 index shed 0.5%.
In stock trading, Elbit Systems stood out with a 3.1% gain following its announcement of a multi-hundred-million-dollar contract in Europe. Elbit will supply PULS rocket launchers and rockets worth $235 million to a European nation under a government-to-government agreement between the Israeli Ministry of Defense and the client country's defense ministry. Elbit has recently secured several defense export deals in Europe as European nations seek to rearm amid regional threats, primarily from Russia.
Among the active stocks in Tel Aviv today were Shufersal, up 0.4%, and Tower Semiconductor, which lost 3.4% following the closure of a negative arbitrage gap. Teva shares opened with a 1.6% increase.
The Tel Aviv defense stock index added another 0.8% today, continuing a correction for these equities, some of which have lost over 40% of their value in recent months. In contrast, the insurance stock index lost about 0.7%, the banking stock index dropped 0.2%, and the real estate stock index fell 0.4%.
Mixed Trends in Asia and Wall Street Futures
Asian stock exchanges traded mixed this morning with a downward bias. Conversely, Wall Street futures signaled a recovery led by tech stocks, supported by a drop in oil prices. Japan's Nikkei 225 traded down about 0.9%, and Taiwan's stock exchange lost approximately 1.1%. Meanwhile, South Korea's Kospi index rose 0.6%.
China's Shanghai Composite turned positive with a 0.2% gain following a positive surprise in Chinese macro data: third-quarter GDP grew 4.5% year-over-year, slightly above forecasts. Retail sales rose 1.1% and industrial output increased 5.5%.
Wall Street futures recovered ahead of today's trading session following Friday's declines: S&P 500 futures rose about 0.8% and Nasdaq futures climbed about 1.3%.
Tech Sector Recovery and Oil Prices
The gains in futures follow a difficult Friday on Wall Street, where the Nasdaq dropped 2.1%, the S&P 500 lost 1.1%, and the Dow Jones fell 0.3%. The declines were led by chip and AI stocks amid concerns that massive investments in artificial intelligence infrastructure might not yield sufficient returns. This week, several key earnings reports from major AI players, including Nvidia and Meta, are scheduled for release on Wall Street.
Oil trading saw declines of about 2% today amid high price levels and the decision by US President Donald Trump to ease sanctions on Russia, which could allow for an increase in Russian fuel exports. Investors are reacting to the possibility of expanded global supply, with Brent crude dropping to around $107.8 per barrel.
