Tel Aviv Indices Pare Gains as US Inflation Surprise Shakes Markets
Tel Aviv indices pared gains to close slightly higher as a surprise US inflation surge sparked sharp market drops across Asia and Wall Street, raising interest rate hike fears.
Tel Aviv Stock Exchange indices closed moderately higher on Tuesday, with the TA-35 index gaining 0.8% and the TA-125 index adding 0.6%, though they pared earlier gains following a surprise rise in US inflation.
Asian markets plunged sharply, led by Seoul dropping 8% and Tokyo losing 5%, after September's US consumer price index rose faster than expected. The data heightened concerns over potential Federal Reserve interest rate hikes and AI investment financing, dragging down tech giants like SK Hynix and Samsung.
Local green energy and cleantech firms, including Doral which initially surged 7.5% before closing up 2%, faced headwinds. Analysts note that rising US inflation increases the likelihood of further rate hikes, affecting cleantech companies operating in the US that rely heavily on loans.
