Global Markets Weekly Overview – Mixed Trends Across Regions, Tel Aviv Shows Modest Strength

The global markets exhibited a mixed pattern during the trading week ending July 17, 2025. While European and select Asian indices posted healthy gains, North American markets faced modest declines, highlighting investor caution amid global macroeconomic uncertainty. The Tel Aviv Stock Exchange (TASE) closed the week on a mildly positive note, led by resilience in leading indices such as the TA-35 and TA-125.

United States: Dow Drops, Nasdaq Holds Steady

In the United States, equity markets reflected divergent sector sentiment. The Dow Jones Industrial Average led the downside with a decline of 0.32%, closing at 44,342.19 points, weighed down by profit-taking in blue-chip industrial and financial stocks. The S&P 500 edged slightly lower by 0.01% to 6,296.79, while the tech-heavy Nasdaq posted a marginal gain of 0.05%, closing at 20,895.66.

These movements suggest continued investor preference for growth and innovation sectors—particularly those linked to AI and cloud technologies—despite headwinds from inflation and uncertain Fed policy. The Russell 2000, which tracks small-cap companies, fell by 0.61%, reflecting investor concerns over domestic demand and rising borrowing costs. Meanwhile, the VIX, Wall Street’s fear gauge, declined by 0.67%, signaling reduced volatility expectations in the near term.

The U.S. Dollar Index remained stable, dipping slightly by 0.02% to 98.46, underscoring the currency’s ongoing appeal as a safe haven amid broader market uncertainties.

Europe: Broad Gains Led by Eurozone Optimism

European markets posted a more optimistic picture. The MSCI Europe Index rose by 0.42%, supported by upbeat economic sentiment across the continent. Major indices including the FTSE 100 (+0.22%), Euro Index (+0.36%), and CAC 40 (+0.01%) moved higher, driven by stronger industrial output and easing inflation data from key Eurozone economies.

However, not all markets were in positive territory. The EURO STOXX 50 and Germany’s DAX both declined by 0.33%, signaling that investors remain cautious about interest rate trajectories and corporate profitability in core EU nations. The British Pound Index dipped 0.06%, influenced by mixed economic signals in the UK.

Asia: Australia and Hong Kong Lead, Japan Slips

Asian markets showed relative strength, although the performance varied by country. The S&P/ASX 200 in Australia surged 1.37%, buoyed by solid earnings and recovering commodity prices. Hong Kong’s Hang Seng Index climbed 1.33% to 24,825.66, reflecting growing investor confidence in tech and property sectors amid supportive policy expectations in China.

The Shanghai Composite inched up 0.50%, supported by stimulus speculation, while Japan’s Nikkei 225 slipped by 0.21%, reflecting pressure from a stronger yen and weaker export data. South Korea’s KOSPI also saw a slight decline of 0.13%, largely due to softness in semiconductor demand.

Tel Aviv Stock Exchange: Solid Weekly Gains for Leading Indices

Back home, the Tel Aviv Stock Exchange showed modest but encouraging strength, outperforming some global peers. The TA-35 Index, which includes Israel’s 35 largest companies by market cap, climbed 0.7% to finish at 3,007.22 points. Trading turnover reached NIS 1.66 billion, with intraday highs touching 3,022.23.

The broader TA-125 Index, comprising the 125 largest and most liquid stocks, gained 0.78%, closing at 3,087.84. The index saw robust activity with a total turnover of over NIS 2.33 billion, indicating solid investor interest across sectors. With a total market capitalization exceeding NIS 1.3 trillion, the TA-125 continues to serve as a barometer for the Israeli economy.

Much of the positive momentum in Tel Aviv can be attributed to a stable interest rate environment and strong performance in financial and tech-related equities. Investor sentiment remains cautious but supportive, especially amid regional geopolitical developments and inflation trends.

Outlook: Volatility Ahead, Focus Turns to Earnings and Central Banks

Looking ahead, global markets are likely to remain volatile as attention shifts to Q2 corporate earnings, inflation reports, and forward guidance from central banks. While Europe appears to benefit from stronger fundamentals, the U.S. market is navigating a complex environment of tight monetary policy and sectoral divergence. In Asia, policy moves out of China and Japan will play a key role in shaping investor expectations.

In Israel, the market’s relative resilience may continue if macroeconomic indicators stabilize and key sectors maintain their momentum. Selective opportunities remain for investors, particularly in defensive and fundamentally strong stocks.