The Tel Aviv Stock Exchange index of the most active companies fell by more than 0.6% at the start of the session on Tuesday, against the backdrop of Israel’s announcement of the start of a specific land operation in southern Lebanon.
According to data from the Tel Aviv Stock Exchange, the TASE 35 index, which includes the 35 most active companies, fell by 0.64%, down from its all-time high of 2,108 points.
In recent days, the index ignored Israel’s announcement of the assassination of the secretary general of Lebanese Hezbollah, Hassan Nasrallah, and the expansion of the conflict with Lebanon, in the worst tension since the 2006 war.
A few days ago, Moody’s cut Israel’s credit rating by two notches in one fell swoop and maintained its negative outlook due to “geopolitical risks” arising from the escalating conflict with Hezbollah and the forecast of a long-term war.
The agency decided to downgrade Israel’s rating from “A2” to “BAA1,” which is the second downgrade of Israel’s rating this year.
Moody’s said in a statement at the time: “The primary motivation behind the rating downgrade is our belief that geopolitical risks have materially escalated to very high levels, suggesting significant negative consequences for Israel’s short- and long-term solvency.
Moody’s Israeli decision was described as an “economic blow” to Israel.
Fitch also downgraded Israel’s credit rating last month and maintained its negative outlook.
Last February, Moody’s downgraded Israel’s credit rating, attributing this to the war in the Gaza Strip and its fallout. The agency also expected Israel’s debt burden to increase beyond expectations before the Gaza war.
The Israeli military said Tuesday that the 98th Military Division had begun directed and specific activities in southern Lebanon, a day after a night of anticipation of an imminent Israeli ground invasion of Lebanese territory.
Since September 23, Israel has launched the most violent and widespread attack against Lebanon since clashes with Hezbollah began about a year ago, killing at least 1,073 people to date, including children. and women, and 2,955 injured, according to the report. data from the Lebanese authorities, and amid fears of the outbreak of a regional war.