•Israeli stocks, as defined by the BlueStar® Israel Global Index (BIGI®), fell 1.66% in the second quarter of 2023, significantly underperforming US and internationally developed market equities for the second straight quarter.
•Israeli technology stocks, as defined by the BlueStar® Israel Global Technology Index (BIGITech®), gained just 0.24% in Q2, outpacing the broader Israeli equity market but underperforming US and Global tech peers by more than 15%.
•The Bank of Israel left their policy interest rate in July unchanged at 4.75% which is still 1.50 percentage points higher than at the start of 2023.
•The Israeli economy, which entered 2023 with lower inflation, and higher growth compared to other developed nations, has weakened slightly as the year has progressed.
•The passage of the initial element of Judicial Reform on July 24 has added significant political risk into the Israeli economy and capital markets.