Tel Aviv Stocks Surge as Israeli Strike Halts Hezbollah Attack

Tel Aviv's key share indices closed about 2% higher, driven by an Israeli pre-emptive strike against Hezbollah, which halted a potential rocket onslaught. The blue-chip Tel Aviv 35 index hit record highs. The surge was also boosted by expectations of U.S. interest rate cuts.

JERUSALEM, Aug 25 (Reuters) - Key Tel Aviv share indices experienced a substantial boost, closing approximately 2% higher following a significant pre-emptive strike by Israel against Hezbollah. The military action managed to curb a potential rocket barrage aimed at crucial targets within Israel.

The blue-chip Tel Aviv 35 index concluded at 2091.6 points, touching an intraday peak of 2091.91, marking a record high. Concurrently, the broader TA-125 index also saw a 2.1% rise.

Yuval Tzuk, an economist at the bourse's research department, noted that the share gains were not only influenced by the military strike but also by growing market optimism regarding potential U.S. interest rate cuts.

(With inputs from agencies.)