Gaza war estimated to cost Israel $48bn middleeastmonitor.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from middleeastmonitor.com Daily Mail and Mail on Sunday newspapers.
Israeli stock and bond prices fell, and businesses closed following a deadly attack by Hamas gunmen from Gaza. Tel Aviv share indices dropped by up to 7%, and government bond prices fell by up to 3%. The shekel, already weakened due to a government plan to overhaul the judiciary, is expected to weaken further. Delta Air Lines and United Airlines have cancelled flights to and from Israel, while schools and many companies have closed. Despite the state of emergency, Israel s Manufacturers Association assured that essential products would not be lacking.
Local currency weakens to 3.85 against US dollar as hopes for a judicial compromise fade, increasing odds for FX intervention, and as Moody's meets with PM in Israel
Contractionary monetary policy is impacting real economic activity, according to economists Yonatan Katz of Leader Capital Markets and Alex Zabezhinsky of Meitav.