Overview

Global markets showed a broadly positive tone on Tuesday, August 12, 2025, with strong gains across major U.S. and Asian indices, while European markets posted modest advances. However, the Tel Aviv Stock Exchange faced a sharp downturn, led by steep declines in leading local benchmarks. As we move into Wednesday, August 13, market participants will closely watch whether the global optimism can spill over into the Israeli market or if domestic headwinds will keep sentiment subdued.

Americas: Rally Strengthens Across the Board

Wall Street continued its upward momentum on Tuesday, with all major U.S. indices closing firmly in the green.

• Russell 2000: 2,282.78 (+2.99%) – Small-cap stocks surged, signaling renewed investor appetite for riskier assets.
• IBOVESPA: 137,913.69 (+1.69%) – Brazil’s benchmark advanced, supported by commodity-related gains.
• Nasdaq: 21,681.90 (+1.39%) – Tech-heavy index climbed as AI and semiconductor stocks extended their rally.
• S&P 500: 6,445.76 (+1.13%) – Broad-based gains across sectors contributed to the advance.
• Dow 30: 44,458.61 (+1.10%) – Blue chips benefited from strong industrial earnings reports.
• S&P/TSX Composite: 27,921.26 (+0.53%) – Canadian equities rose modestly, buoyed by energy and mining stocks.
• US Dollar Index: 98.05 (-0.05%) – The greenback held steady, showing minimal change.
• VIX: 14.73 (-52.45%) – Volatility collapsed, reflecting increased market confidence.

Europe: Gains Tempered by Mixed Data

European equities closed higher overall, though gains were more restrained compared to U.S. and Asian counterparts.

• MSCI Europe: 2,424.54 (+0.73%) – Broad market gains, with defensive sectors in focus.
• CAC 40: 7,753.42 (+0.71%) – France’s benchmark rose, led by luxury goods and energy shares.
• ^N100: 1,587.17 (+0.56%) – Notable strength in industrial stocks.
• Euro Index: 116.75 (+0.53%) – Euro strengthened amid stable ECB policy expectations.
• British Pound Index: 135.01 (+0.50%) – Pound edged higher against the dollar.
• FTSE 100: 9,147.81 (+0.20%) – Gains capped by weakness in financial stocks.
• EURO STOXX 50: 5,335.97 (+0.08%) – Marginal increase as investors awaited economic data.
• DAX: 24,024.78 (-0.23%) – Germany’s benchmark slipped on weaker-than-expected manufacturing figures.

Asia: Broad Gains Signal Positive Risk Appetite

Asian markets posted strong advances, helping set a positive tone for global trading.

• Hang Seng: 25,439.91 (+1.88%) – Hong Kong stocks rallied, driven by tech and property sectors.
• Nikkei 225: 43,399.76 (+1.60%) – Japanese equities gained on strong export data.
• KOSPI: 3,211.17 (+0.67%) – South Korea’s benchmark rose, led by chipmakers.
• 000001.SS: 3,686.34 (+0.56%) – Chinese stocks edged higher on policy easing hopes.
• Australian Dollar Index: 65.30 (+0.25%) – Modest currency strength amid stable commodity prices.
• Japanese Yen Index: 67.66 (+0.24%) – Yen firmed slightly as traders assessed Bank of Japan remarks.
• S&P BSE SENSEX: 80,387.35 (+0.19%) – Indian markets posted small gains amid mixed earnings.
• S&P/ASX 200: 8,838.80 (-0.47%) – Australian equities declined, pressured by resource stocks.

Tel Aviv: Sharp Declines Across Major Indices

In contrast to global optimism, the Tel Aviv Stock Exchange closed Tuesday with steep losses.

• TA-35: 2,898.78 (-1.62%) – 5 gainers vs. 29 decliners, with a turnover of ₪1.78 billion.
• TA-90: 3,099.96 (-2.18%) – Broad selling pressure across mid-cap stocks.
• TA-125: 2,941.06 (-1.76%) – Heavy losses in leading banks and energy companies.
• TA Banks & TA-90: 3,258.79 (-1.99%) – Sector weakness amplified the decline.
• Bond Market: Mixed performance, with short-term bonds slightly up (+0.02%) and inflation-linked bonds gaining marginally (+0.04%).

Outlook for Wednesday, August 13, 2025

Global sentiment appears constructive heading into Wednesday, with the sharp drop in the VIX suggesting reduced volatility ahead. However, Tel Aviv’s sharp underperformance highlights local market-specific pressures that could persist unless fresh catalysts emerge. Investors will be watching for corporate earnings releases, macroeconomic updates, and any geopolitical developments that could sway sentiment.

If global equities maintain their upward momentum, there is potential for the Israeli market to stage a rebound. However, given Tuesday’s steep declines, traders may remain cautious, especially in bank and mid-cap shares. Bond markets are expected to see steady demand as investors balance risk between equities and fixed income.