Netanyahu Has Unnerved Investors and Stoked a Painful Selloff in Israel
- Morgan Stanley urges investors to take defensive bond stance
- Moody’s warns political and social tension may hit economy
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The selloff rocking Israeli markets deepened on Tuesday, with stocks, bonds and the currency all tumbling in the wake of a new law that curbs judicial oversight and heightens concern about the agenda of Benjamin Netanyahu’s government.
Morgan Stanley closed a recommendation to buy the nation’s foreign bonds, echoing Moody’s Investors Service in warning of heightened risk as Israel’s government pushes ahead on a legal overhaul. The shekel tumbled for a fourth-straight session against the dollar, underperforming more than 150 currencies tracked by Bloomberg.