By Dominic Chopping
Israeli stock and bond prices have shown signs of recovery on Monday, following a significant decline on Sunday. Meanwhile, global oil prices have surged in response to the weekend violence carried out by terror group Hamas.
On Sunday, the largest stock indexes on Tel Aviv’s exchange plunged more than 6.5%. However, there has been a slight rebound, with gains of around 0.5% observed on Monday morning amidst a choppy trading session.
The country’s currency, the shekel, has weakened sharply against the U.S. dollar, falling 1.7% to a seven-year low. In response, Israel’s central bank plans to sell up to $30 billion in foreign currencies to stabilize the shekel. Additionally, the bank intends to provide an additional $15 billion in liquidity to the market through swap mechanisms.
Global Oil Prices
The mounting uncertainty in the region has had a significant impact on oil prices. Brent crude has risen by 2.8%, reaching $86.94 a barrel, while WTI is up 3.3% at $85.50 a barrel. Earlier in the session, WTI soared to $87.24 a barrel.
European Defense Stocks
In early European trade, several European defense stocks have experienced gains. Companies such as BAE Systems (UK), Rheinmetall (Germany), Leonardo (Italy), Saab, Dassault Aviation, QinetiQ Group, and Thales have seen their shares rise.
Casualties and Captives
Reports suggest that at least 700 people have been killed in Israel and over 400 in Gaza as a result of the ongoing violence. It has also been claimed that Palestinian militant groups are holding more than 130 captives from the Israeli side.
The conflict, which began with an unprecedented incursion by Hamas, has now entered its third day, with Israeli forces still engaged in battle with militants who are hiding in various locations.