Israel’s parliamentary election is underway on Tuesday, October 27, with early voter turnout reaching its highest level in more than 50 years. The Tel Aviv Stock Exchange will remain closed for the day, while investors await the election outcome amid lingering geopolitical tensions following the October 7, 2023, Hamas attacks and the subsequent wars in Gaza, Lebanon, and Iran.
The result could have implications for Israeli stocks, the shekel, and government bonds when markets reopen.
Benjamin Netanyahu, Israel’s longest-serving prime minister, with 19 years in office, is seeking another term while standing trial on corruption charges, according to Al Jazeera.
His Likud party and the far-right coalition it leads are locked in a close contest with an opposition bloc centered on former military chief Gadi Eisenkot. Neither side appears on course to secure an outright majority in the 120-seat Knesset, Israel’s parliament, according to opinion polls, cited by the media reports.
After rising for much of the year despite three years of war and political turmoil, Israeli stocks fell in early October. However, some investors see further upside if the opposition defeats Netanyahu in Tuesday’s election, potentially easing regional tensions and political risks.