Ministry of Health signals on trading day • Tel Aviv 35 index plunges 2.5% • US correction trend continues: Increases in most indices • Chief economist: "May lose $ 14 billion per economy if crisis continues"

• New stock market declines // Photo: Yossi Zeliger

The Corona Shadow Market: The Tel Aviv Stock Exchange is dropping, Wall Street indexes are climbing. The TA 35 index on the Tel Aviv Stock Exchange dipped 2.5% on yesterday's trading day. The banks index fell by more than 3%, Tel Aviv insurance soon to 5% and Al Al falls by about 6% after announcing the layoff of about a thousand employees, with the aim of minimizing damages as a result of the Corona losses. - 20%.

The immediate reason for the stock market declines is the press conference held yesterday with the participation of the Prime Minister and the Minister of Health, which declared a policy of expanding isolation to Israelis returning from European countries, including France and Germany.

Netanyahu: "We are in the midst of a global epidemic" // Photo: Ami Shamir

Treasury officials have criticized the Ministry of Health's "light hand on the trigger" when it comes to insulation income policies. According to them, this policy is done without sufficient consideration for the needs of the economy, and if the state does indeed get into an economic crisis due to the rigid policy, the risks of panic will rise.

Not in the Fed way

Yesterday, the Bank of Israel announced that it is not in the way of the US Federal Reserve and will not lower its interest rates in Israel. The statement issued by the Governor, Prof. Amir Yaron, was reassuring: The Israeli economy is strong, the markets are stable, the level of reserves is very high and At peak and therefore the hit "measured".

The strong basic economic data of the Israeli economy - including a low debt-to-GDP ratio, low current account surplus, a high level of foreign exchange reserves and a robust financial system - increase the economy's resilience to developments.

The Bank of Israel believes that as of now, the corona has not led to macroeconomic damage, but it has been emphasized that if required, interest rates will be lowered towards April. In a scenario where the spread of the virus will be halted in the coming months, it is estimated that a relatively rapid recovery in the global economy. If the crisis worsens, the chief economist warned of a loss of GDP due to the Corona expansion crisis, amounting to NIS 14-3 billion. "While stock markets in the world and in Israel have responded to developments in price declines and rising volatility, there are no signs of dysfunction of financial and liquidity markets in various markets," Bank of Israel reports. "Supervisory bodies have the tools to deal with challenges that may arise in a scenario where financial and global risks will be exacerbated."

Decrease in orders from China

The Corona could soon lead to a rise in prices in the textile industry. An analysis by Shai Haim, an international trade expert and CEO of the international freight forwarding company COB, shows that "there is already a 15% reduction: 20% percent of Israelis' orders from Alibaba, and 40% reduction of orders from the site in China itself." Alibaba from which the goods come from Israel is located in the US, Cyprus and Russia, but they also receive the original goods from China, and the expectation is that the goods there will soon be reduced and therefore will be felt in the missing.

Happy to be away from Sanders

"The forecast is that we will soon see a rise in prices in the fashion sector here in Israel, as the stores and merchants have already received the goods for spring, but the summer collection will be delayed," says animals who are not out of the possibility, but if the current situation continues, "we will start to see empty stores in two months."

The world, meanwhile, is recovering, with emphasis on the US. Wall Street trading opened yesterday, with leading indices - Dow Jones, P&S and NASDAQ - climbing by more than 1%. In the US, the rise in American politics is explained - candidate Joe Biden has made very good accomplishments in the Democratic Premier of the Democratic Primaries, leading to a dramatic rise in the shares of healthcare companies.

Biden's victories were overtly welcomed by the big Wall Street investors, who are deeply concerned about the victory of socialist candidate Bernie Sanders, who is very hostile to the US stock exchange and wants to impose high profits on capital gains. Yesterday, billionaire Michael Bloomberg announced his retirement from the race and support for Biden - a move that is expected to do more damage to Sanders. In Europe, the European Central Bank and the Bank of England are expected to follow the Federal Reserve's path and also cut interest rates to counter the Corona. This step will help the euro continue to strengthen significantly against the dollar.