Israeli Assets Rally on Growing Optimism for a Cease-Fire

  • Bonds, currency, stocks post some of world’s biggest gains
  • Investors remain alert for conflict risks, fiscal pressure
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Growing optimism that Israel could reach a cease-fire deal with Hamas is driving a rebound in the country’s markets.

The shekel has rallied about 3.6% in July, while Israeli stocks are outperforming the global benchmark for the first time since February. Local-currency bonds are vying with Colombia to hand investors the best returns in developing markets, alongside advances in Israel’s dollar-denominated debt.