{"id":73408,"date":"2023-10-16T23:43:08","date_gmt":"2023-10-17T03:43:08","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/how-the-israel-hamas-war-is-rippling-through-markets-and-hurting-israel-focused-etf\/"},"modified":"2023-10-16T23:43:11","modified_gmt":"2023-10-17T03:43:11","slug":"how-the-israel-hamas-war-is-rippling-through-markets-and-hurting-israel-focused-etf","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=73408","title":{"rendered":"How the Israel-Hamas war is rippling through markets and hurting Israel-focused ETF"},"content":{"rendered":"
\n

Geopolitical tensions in the Middle East are weighing on investor sentiment in the exchange-traded fund market as traders watch for ripple effects from the Israel-Hamas war.<\/p>\n

Shares of the iShares MSCI Israel ETF
\n EIS,<\/span>
\n which holds Israeli stocks, finished Monday 0.7% lower while equities in the U.S. broadly rose, according to FactSet data. The fund has tanked since the Israel-Hamas war began earlier this month, down 10.2% so far in October, while seeing outflows over the past week.\u00a0<\/p>\n

\n

Last week the iShares MSCI Israel ETF suffered its biggest weekly loss since the COVID-19 crisis of March 2020, sinking 9.8%, FactSet data show. The fund tumbled 7.1% on Monday, Oct. 9 alone as investors reacted to Israel\u2019s declaration of war following a surprise attack by Hamas.\u00a0<\/p>\n

\u201cThe market is going to be watching if Iran gets involved\u201d should Israel carry out a ground invasion into Gaza, said Anthony Saglimbene, chief market strategist at Ameriprise Financial, in an interview with MarketWatch on Monday in New York.<\/p>\n

Spillover effects from the war could harm the U.S. economy should oil prices spike as a result, complicating the Federal Reserve\u2019s efforts to bring down inflation to its 2% target in a so-called soft landing, according to Russell Price, chief economist at Ameriprise. High oil prices risk leading to a pullback in consumer spending in the U.S., with increased gas prices at the pump making it tougher for people to make purchases elsewhere in the economy.<\/p>\n

\u201cIt would definitely hit consumer discretionary spending,\u201d which could tip the U.S. into a \u201clong forecast recession,\u201d Price said during the interview.\u00a0<\/p>\n

See:<\/strong> Yardeni raises odds of a recession after Hamas attack on Israel<\/p>\n

U.S. oil prices fell Monday, settling at $86.66 a barrel after a sharp jump on Friday. Despite the recent rise, West Texas Intermediate crude
\n CL00,
\n -0.24%<\/bg-quote>
\n remains below levels seen in late September, before the attack by Hamas, according to FactSet data.\u00a0<\/p>\n

In the U.S. equities market, energy stocks stand to benefit from any rise in oil prices while airlines would risk falling under pressure from higher jet fuel prices and a potential drop in air travel on concerns tied to the war, said Justin Burgin, vice president of equity research at Ameriprise.\u00a0<\/p>\n

Shares of the U.S. Global Jets ETF
\n JETS
\n closed 1.6% higher on Monday, bouncing after a more than 5% slump last week, according to FactSet data. By contrast, the Energy Select Sector SPDR Fund
\n XLE
\n surged 4.5% last week.\u00a0<\/p>\n

The S&P 500\u2019s energy sector
\n XX:SP500.10
\n ended Monday up 0.7% as the broader U.S. stock market climbed even higher. The S&P 500 index
\n SPX,<\/span>
\n a measure of U.S. large-cap stocks, rose 1.1%, while the Dow Jones Industrial Average
\n DJIA
\n gained 0.9% and the technology-heavy Nasdaq Composite
\n COMP
\n advanced 1.2%, according to FactSet data.<\/p>\n

While the iShares MSCI Israel ETF, which has $118 million of assets under management, fell Monday, shares of smaller Israel-focused ETFs increased.<\/p>\n

The ARK Israel Innovative Technology ETF
\n IZRL
\n closed 0.5% higher, while the BlueStar Israel Technology ETF
\n ITEQ
\n gained 1% and the VanEck Israel ETF
\n ISRA
\n rose 0.5%, according to FactSet data. But all three funds remained down so far in October.\u00a0<\/p>\n

Investors pulled $2.6 million from the iShares MSCI Israel ETF over the past week through Friday, bringing this year\u2019s outflows to $5.2 million, FactSet data show.<\/p>\n

In equities elsewhere in the Middle East, shares of the iShares MSCI Saudi Arabia ETF
\n KSA
\n jumped around 2.8% on Monday.\u00a0<\/p>\n

While analysts at Yardeni Research warned in a note last week that a potential tightening of sanctions on Iran oil could cause crude to spike above $100 a barrel and \u201ctrigger a worldwide recession,\u201d they also said that it\u2019s more likely \u201cSaudi Arabia would increase its production and exports to keep the price of oil\u201d below that level.<\/p>\n

Meanwhile, aerospace and defense stocks stand to rise amid the war, said Ameriprise\u2019s Burgin.<\/p>\n

The iShares U.S. Aerospace & Defense ETF
\n ITA,<\/span>
\n Invesco Aerospace & Defense ETF
\n PPA
\n and the SPDR S&P Aerospace & Defense ETF
\n XAR
\n all booked gains on Monday, after each climbing more than 4% last week, according to FactSet data.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Geopolitical tensions in the Middle East are weighing on investor sentiment in the exchange-traded fund market as traders watch for ripple effects from the Israel-Hamas war. Shares of the iShares MSCI Israel ETF EIS, which holds Israeli stocks, finished Monday 0.7% lower while equities in the U.S. broadly rose, according to FactSet data. The fund […]<\/p>\n","protected":false},"author":1,"featured_media":73409,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-73408","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nHow the Israel-Hamas war is rippling through markets and hurting Israel-focused ETF | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Geopolitical tensions in the Middle East are weighing on investor sentiment in the exchange-traded fund market as traders watch for ripple effects from\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=73408\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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