Stocks on the Tel Aviv Stock Exchange reflected the gloomy national mood on Sunday, as fears concerning the novel coronavirus outbreak continued to spread in Israel and abroad.The benchmark TA-35 index declined 2.32% during the day’s trading, and the TA-125 also closed the day down 2.57%. The declines in Tel Aviv mirrored similar falls on foreign indexes late last week, driven by global fears over economic growth and the impact of the outbreak on business activity.As of Sunday, the virus had killed 2,442 people in China and approximately two dozen across the world. During the weekend, sharp rises in infections were recorded in South Korea, Italy and Iran.While the global economic impact of the virus is shrouded in uncertainty, depending on the success of measures to control its transmission, Leader Capital Markets macro-economist Yonatan Katz told The Jerusalem Post that Israel is “not expected to be impacted significantly by the virus.”Katz explained that Israel’s key growth engines are based on exports of hi-tech goods and services, rather than industries reliant on Chinese manufacturing and supplies.“If markets collapse and there is a major downward correction, then of course that will impact Israel and the ability of companies to raise money on the stock exchange,” Katz said. “If it is something moderate, then I don’t think it’s that significant.”While incoming tourism only represents a small percentage of GDP, he added, a trend of Israeli citizens opting to enjoy domestic holidays rather than spending their money abroad could “marginally” boost economic growth.Dr. Ron Tomer, president of the Manufacturers Association of Israel, sent a letter to Prime Minister Benjamin Netanyahu on Sunday requesting an urgent meeting to ensure “continuous activity of the economy and the establishment of a financial safety net for businesses” amid the outbreak.“The spread of the virus in the East and the possibility of an outbreak in Israel presents us with major economic and civil challenges,” Tomer wrote. “The State of Israel has a strong and stable manufacturing sector that can supply the needs of the economy, even during this period, and I believe that proper preparation and cooperation between the government and the business sector will enable us to overcome the growing crisis.”The impact of the coronavirus, Tomer said, has led to a shortage of raw materials, delays in supplies, reduced cargo flights, a lack of clarity in the shipping sector and declining production in the Far East.The Bank of Israel is scheduled to announce its latest decision regarding the benchmark interest rate on Monday afternoon. While most economists predict the rate will remain unchanged at 0.25%, the continued spread of the virus could see a further decline in already-low inflation.Such a development could result in the lowering of interest rates in future decisions of the central bank, due in April and May.