Global capital markets opened the third quarter with mild volatility, as mixed trends characterized trading across Asia, Europe, and the United States. Investors remain attentive to macroeconomic data, corporate earnings, and government bond yields, all against a backdrop of cautious monetary policy from central banks.

Tel Aviv Stock Exchange: Mid-Cap Index Advances, TA-35 Dips Slightly

Trading in Tel Aviv ended Monday (01/07/2025) with a mixed sentiment. The TA-35 index declined by 0.40% to 2,946.90 points, reflecting negative sentiment among large-cap stocks. Conversely, the TA-90 index recorded an impressive 1.44% increase, closing at 3,309.36 points, while the TA-125 index edged up by 0.08% to 3,025.03 points. The daily trading turnover in the TA-50 rose by 1.10%, reaching 1.35 billion NIS.

Bond Market: Steady Positive Momentum and High Turnover

Israel’s bond market registered modest gains yesterday. Corporate bonds rose by 0.04%, with a trading volume of 1.14 billion NIS. The All-Bond CPI-linked index climbed by 0.07% on a substantial turnover of 1.97 billion NIS. Government bonds also closed with a slight gain of 0.02% and a turnover of 277 million NIS. Overall, the Israeli bond market demonstrated continued stability, strong volumes, and moderate risk appetite among investors.

Global Markets: Mixed Signals Across Major Regions

United States: Wall Street ended the session with relatively stable results, highlighted by gains in the Dow Jones (+0.91%), Russell 2000 (+1.03%), and Canada’s S&P/TSX (+0.62%). However, the S&P 500 and Nasdaq saw minor declines (-0.11% and -0.82%, respectively).

Europe: Trading was also mixed in the major European bourses. The FTSE 100 gained 0.28%, the DAX lost 0.99%, and France’s CAC 40 slipped by 0.04%. Both Euronext and Euro Stoxx indices recorded minor losses.

Asia: Asian markets mostly finished in positive territory, with the Hang Seng rising 0.79%, the S&P/ASX 200 up 0.66%, and the Nikkei in Japan down by 0.56%. Chinese and Indian indices registered mild losses.

Commodities and Currencies: Gold Pulls Back, Yen Strengthens

In commodities, crude oil prices fell slightly to $65.32 per barrel, while gold dropped by 0.24% to $3,341 per ounce, and silver lost 0.50%. On the currency front, the dollar/yen pair strengthened by 0.29% to 143.8. The euro lost 0.19% against the dollar (EUR/USD).

Global Government Bonds: Yields Hold Steady

US government bond yields remained relatively stable, with the 10-year yield at 4.25% (+0.50%), and the 5-year yield at 3.84% (+1.24%).

Summary and Outlook

The third quarter opens with an air of cautious optimism, as investors weigh the prospects for sustained market stability and positive momentum versus the risk of fatigue ahead of key employment, inflation, and earnings releases in the US and Europe. In Tel Aviv, the TA-90 index continues to demonstrate notable resilience, while the TA-35 maintains a narrow range, likely reflecting profit-taking in leading shares.

Within Israel’s bond market, slight gains and robust trading volumes across both corporate and government bonds point to continued demand for lower-risk assets.