Israeli financial market reacts to Brexit vote

Israel's Tel Aviv Stock Exchange opened with sharp declines on Sunday morning, mirroring the falls in international markets following UK's vote to leave the European Union.

TA25 index of Israel's 25 leading companies decreased by about three percent at the beginning of the commerce, with insurance and real estate stocks dropping by 4-6 percent.

Over the weekend, the Ministry of Finance set up a situation room to monitor the development around the clock.

"We have a strong and stable economy that is capable of meeting any situation and any challenge," Minister of Finance, Moshe Kahlon, told the cabinet on Sunday.

"During the weekend, we received unemployment figures that were among the lowest we have known in decades. Israel's economy benefits from a low fiscal deficit and a debt-to-GDP ratio that is one of the lowest among developed countries," he said.

Also in a calming message to local markets on Sunday, Israeli Prime Minister Benjamin Netanyahu said in a statement that Israel's "strong" economy and large foreign currency reserves put the country in a relatively good position amidst the unrest in the global economy.

"There is no direct effect on Israel apart from the fact that we are part of the global economy," he said. Endit