Global markets advance as tech shares rebound and SA unveils fiscal plans

US equities closed higher on Wednesday, supported by renewed optimism around artificial intelligence (AI) demand following upbeat outlooks from SpaceX and Super Micro Computer. The S&P 500 rose 0.60%, the Nasdaq Composite gained 1.10% and the Dow Jones Industrial Average advanced 360 points. SpaceX rose 7.80% after Elon Musk signalled support for a potential merger with Tesla, which gained 3.40%. The company also reported its first profit since listing publicly. Super Micro Computer surged 9.50% after issuing a strong quarterly outlook, lifting Hewlett Packard Enterprise by 3.70% and Dell by 5.30%. Chipmakers also advanced, with Nvidia rising 2.50%, Intel gaining 1.30% and AMD adding 3.40%. However, Netflix fell 5.30% after issuing a weaker-than-expected fourth-quarter profit forecast, while AT&T declined 6.40% despite beating earnings estimates. Elevance Health slipped 1.40% even after improving its profit guidance for 2026.

European equities rebounded after two sessions of losses, with technology and energy shares supporting the recovery. The Euro Stoxx 50 moved more than 1% higher, while the broader Stoxx 600 inched up less than 1%. Germany’s DAX rose 1.35% to 25 645, while France’s CAC 40 gained 1.10% to 7 922. EssilorLuxottica surged 15.50% after third-quarter revenue exceeded expectations, while Carrefour fell more than 10% after cutting its profit outlook. The FTSE 100 edged higher, supported by oil majors and banking shares. UK annual inflation accelerated to 3.50% in September 2026, above expectations of 3.40%, while government borrowing reached £97.8 billion in the April–September period, exceeding the Office for Budget Responsibility’s March forecast. 

Asian markets were mixed. Japan’s Nikkei 225 rose 0.85% to 64 621, supported by technology shares after Super Micro’s outlook strengthened sentiment towards AI-related spending. China’s Shanghai Composite fell 0.60% to 3 713 as disappointing corporate earnings weighed on sentiment, despite economic growth accelerating to 4.50% year-on-year in 3Q26. Hong Kong’s Hang Seng Index declined 0.90% to 23 652, pressured by technology and battery shares, including CATL, amid concerns about competition and weaker Chinese auto sales. 

South African equities fell on Wednesday. The JSE All Share Index declined 0.67% to 109 657.95, while the Top 40 lost 0.79%. Industrials fell 1.28%, resources declined 0.48% and financials shed 0.55%. The rand strengthened 0.22% against the US dollar to R16.36, was almost unchanged (0.01%) against the pound at R21.92 and further gained 0.11% against the euro to R18.39. 

Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement reaffirmed the government’s fiscal consolidation plans. Public debt was reported to have peaked at 78.40% of gross domestic profit in 2025/26, while the primary surplus is forecast to reach 1.70% in 2026/27. However, the 2026 growth forecast was lowered to 1.20% from 1.60%. September 2026’s annual inflation rate rose to 4.50% from 4.40% in August, below expectations of 4.70%. Higher fuel prices pushed transport inflation to 10.80%, while core inflation eased to 4%. 

At 19h33 SAST, Brent crude traded at US$108.82 a barrel, up 0.03%. Gold gained 0.34% to US$4 138.48 an ounce, while silver fell 0.40% to US$57.75 and platinum declined 1% to US$1 640.