Israeli stocks fall, shekel weakens as Netanyahu bloc beats election forecasts
Summary
Israeli stocks, bonds and the shekel fell after initial election results showed Prime Minister Benjamin Netanyahu’s bloc outperforming forecasts but still falling short of a parliamentary majority. Investors worried the result could prolong political uncertainty and delay a stable government formation.
Key Points
- Israeli markets came under pressure after initial results showed Netanyahu’s right-wing bloc ahead of expectations but short of a majority.
- The shekel weakened more than 2% and Tel Aviv’s benchmark stock index fell 2.5%, while bonds also slipped.
- Analysts said the result could make government formation difficult and raise the prospect of another election.
- Market strategists said the selloff reflected uncertainty over the election outcome more than a change in Israel’s economic fundamentals.
