State President Yitzhak Herzog's statement on the apparent compromise on the issue of legal reform jumps the stock market in Tel Aviv and the shekel.
The dollar fell against the shekel by more than one percent to a level of 3.62, when it opened the trading day at a level of more than 3.65.
The Tel Aviv 35 index rises by 1%, the Tel Aviv 125 index by about 1.2%.
Before the president's announcement, the stock market traded with slight price increases of up to half a percent.
The Tel Aviv 25 index strengthened again, photo: no
The correlation between the Israeli stock market and the American stock market has been disconnected in the last month and a half since the legal reform of Minister Yariv Levin was announced.
Since then the Israeli indexes have been trading at a low return compared to the American market in a way that does not represent the real economic situation of the Israeli economy.
A change in the mindset of the investors, also Tel Aviv 35 again to strengthen, photo: none
On the way to a compromise?
Protest against the legal reform (archive), photo: AP
Thus, last Friday the NASDAQ index jumped by about 2%, the S&P 500 index by about 1.6% - increases that in the past would lead to a jump in the stock market in Israel as well - which, as mentioned, did not happen this morning, but only after the president's announcement.
We will also note that the rate increases as of the time the article was published on the stock exchange (around 1%), as well as the strengthening of the shekel, are not dramatic, but do indicate a change in the mindset of investors, which may increase if the compromise in the legal reform is announced.
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