A trendy two-month-long US stock exchange has shed light on euphoria and reacted to the world's leading news - the spread of the corona.
The reason for the response from the markets is not panic. As the market has shown, it only responds to changes in real indices and responds indifferently to panic.
In Tel Aviv, too, one could think that the stock exchange was excited by the general warning issued by the Ministry of Health, perhaps also by the Treasury's estimates of the expected loss of the Corona product. But the truth is that Tel Aviv has only responded to the US.
The stock exchanges have responded to governments' warnings of crowds and travel, to closing in Japan, to the travel warnings for the big Italian economy in the Union, to canceling major and important conferences around the world, and to canceling business trips that appear to be hurting business and profitability.
In fact, the domino effect - tourism and aviation, as well as public transport in general and the decline in production in China - have led to a decline in energy prices. Delek Group has dropped 40% since the Corona erupted, but so have energy companies. It's not panic, it's a direct response to events on the ground.
For further opinions of Eran Bar-Tal