First declines yesterday on the New York Stock Exchange, which changed trend • Today there were also sharp declines in Tel Aviv: El Al's share lost 7% • Global growth expectations were revised downwards

• New York Stock Exchange. The dramatic increases were erased // Photo: IP

From Wednesday (Wednesday), Israel Clock, the Corona seems to be sticking to the markets. It started a trend in the US yesterday evening, elevators in trading open for slight declines. That change signaled the Tel Aviv Stock Exchange, which today responded to more than 3.5% declines in TA-35 and TA-125 indices. El Al shares plummeted More than 7%, against the company's announcement of cancellation of flights to Italy, Thailand, China and Hong Kong, and a projected $ 70-50 million drop in company revenue this year.

With the opening of New York's trading day, there were 2.5% declines in the NASDAQ and slightly less than 2% in Dow Jones, which erased the dramatic increases from early 2019, and currently the Dow Jones is about 10% lower than its peak. "B is concerned that the index may record the weakest week in 12 years, the period of the Great Economic Crisis.

European stock exchanges also fall dramatically by 3.6%, with the European Stokes 600 index also 10% lower than its peak, which was achieved about a year ago.

Meanwhile, in the US recorded the first case of infection from Corona and the Bank of America warn that the world is moving towards the weakest economic year since the crisis of 2008. According to the bank's research department, global growth at the end of 2020 is expected to reach 2.8%, thus Down from 3% for the first time in 11 years, China's growth is expected to be 5.2% - down 10% from 2019.

At the same time, Bank of America does not currently predict that the Corona will become a global epidemic and cause a recession. Uncle Resnik, interest rate strategist at Leumi Capital Markets, agrees with the US Bank's assessment. "It seems that if the epidemic is stopped at some point in the Western world, as is the case in China, we may see market stabilization," says Reznik. "It should be kept in mind that the level of liquidity in the world is very high, and interest rate cuts in the US, along with a sharp decline in yields, will at some point restore the relative attractiveness of stock markets. Stock market declines appear to eventually create investment opportunities given the global recession is not expected. "

Market declines are taking place despite President Trump's reassurance this week, and against the backdrop of the dollar, US Federal Reserve estimates that interest rates will fall - the first of three expected this year. US interest rates may also lessen the pressure on the Bank of Israel to The low interest rates are the same in Israel. In the meantime, the Israeli shekel continues to show stability against the dollar and other major currencies in the world - the euro, the sterling, the yuan and the Swiss franc.