No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 25, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Israel can’t escape impact of tariffs

by TheAdviserMagazine
7 months ago
in Business
Reading Time: 4 mins read
A A
Israel can’t escape impact of tariffs
Share on FacebookShare on TwitterShare on LInkedIn


Last Thursday and Friday were among the worst days ever on Wall Street. The last time that the US stock market fell so sharply, by more than 5%, was in March 2020, in the panic over the outbreak of the Covid 19 pandemic. Those two days last week were the fifth worst in the history of the S&P 500.

In the wake of President Trump’s imposition of tariffs of between 10% and 54% on almost the entire world, two of the four main stock indices in New York, Nasdaq and the Russell 2000, are in bear market territory, that is to say, they are 20% below their last peaks. The S&P 500 is only 3% away from that category.

The tariffs themselves are not the cause of the falls on the stock market. It that were the case, we would see different responses by companies that will be impacted by the tariffs and those that will not. The broad negative reaction of the market, across all sectors, indicates a much worse fear: a recession in the US at best; a global recession at worst. Stagflation in the nightmare scenario.

Who is predicting a recession?

Until two months ago, no-one imagined that that question would arise. But if on Thursday, after President Trump’s presentation of the tariffs policy, the market feared a recession, after the speech by US Federal Reserve chairman Jerome Powell at the Society for Advancing Business Editing and Writing Annual Conference in Arlington, Virginia, it trembled. “Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said. Speculation began on the market that Trump’s measures were designed to force the Federal Reserve to cut interest rates, but Powell implicitly rebuffed that possibility. “We will continue to carefully monitor the incoming data, the evolving outlook, and the balance of risks. We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy,” he said.

Nevertheless, the assessment on the market is that the Federal Reserve will have to reduce its interest rate three and perhaps even four times over the coming year. In the choice between high inflation and a recession, central banks generally choose to give priority to the latter danger.

In the past few days, the major banks have raised their assessments of the probability of a recession. JP Morgan now sees a 60% chance of a recession, Goldman Sachs talks about 35%, as does rating agency S&P Global. HSBC puts the probability at 40%.





RELATED ARTICLES




Netanyahu due in Washington to discuss tariffs


US market slide shakes shekel


Treasury assesses potential damage to Israel’s US exports






How will a recession in the US affect Israel?

The trade war reached Tel Aviv as well yesterday, but the falls on the local stock market were less steep than elsewhere. While stock indices in the US and Europe fell by about 10% in two days, the Tel Aviv 35 Index fell by just under 4% yesterday and by 0.62% on Thursday. All the same, if the world’s largest economy goes into recession, the shock waves will reach Israel.

Bank Hapoalim chief markets strategist Modi Shafrir warns that “even if Israel signs a new trade agreement with the US this week that substantially moderates the extent of the tariffs imposed on it, local economic growth will be hit as the global trade war worsens.”

Leader Capital Markets chief economist Jonathan Katz adds on the positive side: “Israel’s good fortune is that the economy’s main engine is exports of technology services, which are expected to be exempt from tariffs. A global slowdown and surplus supply of commodities will reduce import prices in Israel and moderate inflation.”

Katz adds, however, that “There will be a negative wealth effect on the consumer in Israel, and in the world in general, because of the sharp falls on the capital market,” that is, Israeli consumers will feel less wealthy, and will therefore consume less.

Meitav chief economist Alex Zabezhinsky also fears the negative wealth effect, which he says will weaken consumer demand in Israel in the coming year. He has cut his GDP growth forecast for Israel from 4% to 3.5%. “The Israeli economy is likely to be hurt not by the direct effect of the tariffs, but in many indirect ways. A hit to economic growth in Israel will affect demand through a weakening of the labor market, a fall in value of the public’s savings, and a worsening of general sentiment. The expected decline in world trade will hurt Israeli companies… Over the years, the performance of the Nasdaq index has been one of the most important indicators of growth in Israel. The sharp fall sin technology stocks in response to the tariffs is liable to lead to lower investment in the sector, particularly in Israel,” Zabezhinsky says.

Zabezhinsky estimates that the local market will outperform overseas markets in the near term, largely because of the expectation of a transfer of some savings from S&P 500 tracks to general tracks. “That will boost demand for the shekel and for local securities,” he says.

Published by Globes, Israel business news – en.globes.co.il – on April 7, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.




Source link

Tags: EscapeimpactIsraelTariffs
ShareTweetShare
Previous Post

Tired of Feeling Broke? Here 7 Smart Low-Key Finance Advice

Next Post

Trump Tariffs Run Over Already-Desperate Car Industry; Higher Prices, Job Cuts, and Supplier Closures Baked In

Related Posts

edit post
Bharat Rasayan board okays stock split, issue of bonus shares

Bharat Rasayan board okays stock split, issue of bonus shares

by TheAdviserMagazine
October 25, 2025
0

Agro-chemical firm Bharat Rasayan's board has approved the sub-division of its equity shares and issue of bonus shares in a...

edit post
Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

by TheAdviserMagazine
October 25, 2025
0

The Giving Pledge was designed to hold the world’s richest people accountable for donating at least half their fortunes in...

edit post
A click lower, a tick higher

A click lower, a tick higher

by TheAdviserMagazine
October 25, 2025
0

Mortgage rates are wavering slightly today. According to Zillow, the average 30-year fixed mortgage rate has edged down four basis...

edit post
Markets pricey with modest EPS growth; autos, hospitality offer opportunities: Venkatesh Balasubramaniam of JM Financial

Markets pricey with modest EPS growth; autos, hospitality offer opportunities: Venkatesh Balasubramaniam of JM Financial

by TheAdviserMagazine
October 25, 2025
0

Venkatesh Balasubramaniam of JM Financial shared a comprehensive view of the Indian equity markets, highlighting the challenges and opportunities amid...

edit post
Like Milei, Trump also can’t stop Argentina’s peso from falling — ‘Will the U.S. get paid back?’

Like Milei, Trump also can’t stop Argentina’s peso from falling — ‘Will the U.S. get paid back?’

by TheAdviserMagazine
October 25, 2025
0

Argentina’s peso continues to sell off despite a U.S. rescue package, ahead of a key election that could trigger another...

edit post
US dollar makes modest weekly gain after soft inflation data

US dollar makes modest weekly gain after soft inflation data

by TheAdviserMagazine
October 25, 2025
0

The U.S. dollar was almost flat on Friday after dipping following fresh inflation data that showed U.S. consumer prices increased...

Next Post
edit post
Trump Tariffs Run Over Already-Desperate Car Industry; Higher Prices, Job Cuts, and Supplier Closures Baked In

Trump Tariffs Run Over Already-Desperate Car Industry; Higher Prices, Job Cuts, and Supplier Closures Baked In

edit post
How Can Civility Help You Resolve Your Taxes?

How Can Civility Help You Resolve Your Taxes?

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Bharat Rasayan board okays stock split, issue of bonus shares

Bharat Rasayan board okays stock split, issue of bonus shares

0
edit post
Social Security Will Get a Bigger Bump in 2026 — but Don’t Get Too Excited

Social Security Will Get a Bigger Bump in 2026 — but Don’t Get Too Excited

0
edit post
Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

0
edit post
How to Make 3% More Rent Automatically (Takes 5 Minutes) (Rookie Reply)

How to Make 3% More Rent Automatically (Takes 5 Minutes) (Rookie Reply)

0
edit post
Links 10/25/2025 | naked capitalism

Links 10/25/2025 | naked capitalism

0
edit post
Rebranded Multi-Asset Broker Scales Institutional Crypto Access

Rebranded Multi-Asset Broker Scales Institutional Crypto Access

0
edit post
Bharat Rasayan board okays stock split, issue of bonus shares

Bharat Rasayan board okays stock split, issue of bonus shares

October 25, 2025
edit post
Links 10/25/2025 | naked capitalism

Links 10/25/2025 | naked capitalism

October 25, 2025
edit post
Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

October 25, 2025
edit post
A click lower, a tick higher

A click lower, a tick higher

October 25, 2025
edit post
How to Use Your Illinois Car Accident Report in Insurance Claims

How to Use Your Illinois Car Accident Report in Insurance Claims

October 25, 2025
edit post
Markets pricey with modest EPS growth; autos, hospitality offer opportunities: Venkatesh Balasubramaniam of JM Financial

Markets pricey with modest EPS growth; autos, hospitality offer opportunities: Venkatesh Balasubramaniam of JM Financial

October 25, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Bharat Rasayan board okays stock split, issue of bonus shares
  • Links 10/25/2025 | naked capitalism
  • Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.