Mizrahi: Improved economy not yet reflected in jobs

In its weekly macroeconomic survey, Mizrahi Tefahot Bank says that the macroeconomic data recently published by the Central Bureau of Statistics shows generally positive economic conditions, but that they are not yet reflected sufficiently in the job market. The bank also cautions that if the shekel resumes its appreciation, this will pose a challenge to exporters.

Mizrahi Tefahot Bank advises extreme caution toward the Tel Aviv Stock Exchange (TASE) in the coming weeks, because foreign markets are falling, and the effect of the improved domestic economy is limited. The bank advises investing in stocks and derivatives which will see only limited falls in the likely scenario of an investor sentiment and capital market downturn.

Mizrahi Tefahot Bank does not expect the shekel to appreciate further against the dollar, and that some depreciation is more likely as the dollar strengthens against the euro. However, the shekel-dollar exchange rate will be affected by changes in the interest rate and in the exchange rate of the dollar against other currencies.

Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010