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Markets React as Gaza Ceasefire Brings Calm
Ceasefire Boosts Confidence in Global Trade
October 13, 2025
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Good Morning, Markets are hitting new highs as a Gaza ceasefire sparks a wave of optimism across global equities. Israelβs benchmark index jumped nearly 2%, and oil prices eased as traders priced in lower geopolitical risk. We unpack how this truce is shaping investor sentiment, what it signals for regional stability, and why energy markets may not stay quiet for long.Markets also rebound as Trump tempers his China tariff rhetoric, the U.S. government shutdown extends into a 12th day with looming layoffs, and the Nobel Prize in Economics honors scholars for pioneering research on innovation led growth. Thank you for your feedback. Your responses and today's questions, are below. Here are your Morning Bullets. β Truly yours, Fred Frost |
π Friday's Market RecapFriday saw Wall Street take a brutal hit as U.S.-China trade tensions flared with Trumpβs 100% tariff threat on Chinese imports, dragging the S&P 500 down 2.71% for its worst day since April. The Dow fell 1.9%, and Nasdaq tumbled 3.6%, fueled by fears of supply chain chaos over rare earth controls. Hereβs what moved the needle.
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π Daily Performance Snapshot
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π What to Watch TodayTodayβs docket is packed with events that could sway markets, from policy remarks to economic deadlines amidst ongoing trade and shutdown concerns. Keep your eyes peeled for these developments. |
π‘ Opportunity WatchAmid trade spats and policy shifts, a few corners of the market are flashing potential for savvy investors. Hereβs where to look.
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π₯ The Big BulletGaza ceasefire lifts Israeli markets and boosts investor confidenceWhat happened: After Israel and Hamas agreed to a Gaza ceasefire, the Tel Aviv Stock Exchange surged nearly 2%, with the TA-125 index climbing to 3,327 and the TA-35 rising to 3,250. Investors reacted positively to news of de-escalation, signaling reduced geopolitical risk. Confidence strengthened further as fund managers in Israel noted rising inflows into local equities, a stronger shekel, and easing bond yields. The rally followed weeks of uncertainty tied to conflict in Gaza and came amid broader optimism for a stable truce. Why it matters: The ceasefire reduced Israelβs perceived risk premium, encouraging global investors to re-enter its markets. A firmer shekel and lower bond yields suggest improving economic sentiment, potentially easing inflation pressure and funding costs. For long-term investors, this reflects a shift from defensive assets toward equities. The development also has regional implications, global trade routes affected by Middle East tensions could gradually normalize, improving logistics and reducing energy-related volatility. In short, calmer geopolitics may support both Israelβs domestic growth and global market stability. Whatβs next: Investors will watch how durable the ceasefire proves in the coming weeks. Renewed clashes could quickly reverse market gains and strengthen the dollar again against the shekel. Energy traders are monitoring crude prices closely after oil settled lower following the truce, as traders priced in lower geopolitical risk. Policymakers in Israel may also face calls to capitalize on market calm to attract more foreign investment and stabilize inflation expectations. For now, the balance of peace and profit remains fragile but promising. |
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Today's Trivia
- A )The amount of taxes a person pays each year
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Last week, 91% of you chose the right answer to the trivia question: The total amount of money needed to cover basic expenses like housing, food, and transportation
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