Qualcomm tops Q4 forecasts on booming AI chip demand, upbeat FY26 outlook boosts sentiment

South Africa

The JSE Top 40 advanced 1.38% to 101,399.6 points, while the All Share gained 1.32%, ending at 108,795.9 points, supported by selective buying in financials and resources. The S&P Global PMI fell to 48.8 in October, signalling contraction after seven months of expansion as new orders weakened and export sales declined. Supplier delivery times improved to a fourteen-year high, reflecting reduced logistics friction and softer input demand. Corporate updates included Vodacom’s settlement of its “Please Call Me” dispute and ARM’s Beeshoek Mine entering care and maintenance, highlighting continued margin pressure across South Africa’s cyclical and industrial sectors amid subdued domestic demand.

Europe

European equities ended marginally higher, with the STOXX 600 up 0.2% at 571.9 after recovering from early-session losses led by technology stocks. Earnings momentum improved mid-season as data signalled firmer corporate health across core economies. Germany’s services PMI rose to 54.6, its strongest in over two years, while the UK PMI climbed to 52.3, both confirming sustained expansion. Investors rotated into defensives as valuations normalised, while eurozone growth indicators pointed to stabilising domestic demand. Despite improved sentiment, Europe continues to underperform U.S. peers, with analysts favouring quality balance sheets and consistent free-cash-flow generators.

United States

U.S. equities rebounded broadly as stronger economic data and solid corporate earnings lifted risk appetite following Tuesday’s sharp sell-off. All three major indices advanced, led by renewed gains in large-cap technology and consumer discretionary sectors. ADP employment rose 42,000 in October, while services activity expanded despite higher input costs. Jamie Dimon cautioned on stretched valuations, tempering momentum into the close. The Supreme Court questioned the legality of prior U.S. tariffs, while China eased retaliatory duties. With 83% of S&P 500 constituents beating expectations, earnings resilience remains the key anchor for equity performance.

Asia

Asian equities advanced on Thursday, retracing prior losses as stronger U.S. data and improving risk sentiment lifted regional benchmarks. Japan’s real wages fell for a ninth straight month, underscoring the wage-price gap complicating the Bank of Japan’s policy path. Singapore’s DBS Group reported Q3 net profit –2% y/y to S$2.95 billion, beating forecasts despite margin compression, and raised its quarterly dividend to S$0.75 per share. Regional banks flagged narrowing spreads into 2026 as rate-cut expectations build. Broader sentiment improved across Asia as investors rotated into cyclicals, financials and exporters following the previous session’s technology-led volatility.

Commodities

Gold climbed over 1% on renewed haven demand amid policy and valuation uncertainty, while oil prices stabilised after sliding to two-week lows. The EIA reported a 5.2 million-barrel increase in U.S. crude inventories, fuelling supply concerns. Year-to-date demand growth of 850,000 bpd remains below J.P. Morgan’s 900,000 bpd projection, reflecting weaker industrial consumption. Oversupply from both OPEC and non-OPEC producers continues to weigh on sentiment, though traders expect gradual rebalancing through seasonal demand and potential production restraint. Market consensus sees energy prices consolidating as inflation expectations and inventory cycles converge.

Currencies

The rand firmed slightly after touching a two-month low, supported by improved global risk appetite and domestic equity inflows. Risk-sensitive Australian and New Zealand dollars recovered in tandem with equities, offsetting the drag from firmer U.S. yields. Broader currency movements remained range-bound, with volatility subdued by reduced data visibility during the prolonged U.S. government shutdown. Market participants highlighted liquidity distortions as policymakers rely on private indicators for guidance. Overall, sentiment remains cautiously constructive, with investors watching U.S. yield dynamics and global growth revisions to gauge near-term direction.

Gold Fields Limited (GFI) +4.46%

Gold Fields reported a strong third quarter to September 2025, with attributable production up 6% QoQ to 621koz and AISC down 10% QoQ to US$1,557/oz, reflecting improved operating efficiency and higher sales volumes. Net debt fell 53% to US$791 million, lowering leverage to 0.17× EBITDA. The group completed its US$1.45 billion Gold Road Resources acquisition, securing 100% of the Gruyere mine. Salares Norte ramp-up and Tarkwa’s grade improvement underpinned guidance reaffirmation at 2.25–2.45 Moz for FY2025. With expanding output, declining costs, and disciplined balance-sheet management, Gold Fields remains well-positioned for sustained cash generation into 2026.

African Rainbow Minerals Limited (ARI) +0.45%

African Rainbow Minerals announced that its jointly owned subsidiary, Assmang, will place the Beeshoek Iron Ore Mine on care and maintenance following the cessation of offtake by ArcelorMittal South Africa (AMSA). With the supply contract expiring in June 2024 and final deliveries ending in July 2025, operations have become uneconomical due to the mine’s legacy infrastructure and single-customer exposure. Mining activities ceased at end-October 2025, and 622 employees will be retrenched effective 30 November 2025. Assmang is supporting affected staff and assessing future strategic options for the site, including potential redevelopment pathways.

Vodacom Group Limited (VOD) +0.24%

Vodacom announced the out-of-court settlement of the long-standing “Please Call Me” dispute, bringing closure to a matter that has spanned nearly two decades. The settlement agreement, approved by the Board on 4 November 2025, results in the withdrawal of Vodacom’s Supreme Court of Appeal case and the abandonment of the 8 February 2022 High Court judgment. The financial impact has been incorporated into the Group’s H1 FY2026 interim results, following the 31 October trading statement. Management noted satisfaction at reaching finality, allowing renewed strategic and operational focus on core growth initiatives.

Blu Label Unlimited Group Limited (BLU) +5.31%

Blu Label announced that Cell C Holdings Limited, in which its subsidiary The Prepaid Company (TPC) is the principal shareholder, intends to list on the Prime Segment of the JSE’s Main Board under the code CCD. The planned listing will follow a restructuring that consolidates Cell C’s operations and simplifies its capital structure, including a debt-to-equity conversion and acquisition of Comm Equipment Company. The ZAR 7.7 billion private placement, including a ZAR 2.4 billion BEE allocation, aims to enhance liquidity and reduce leverage. With FY 2025 pro forma revenue of ZAR 13.7 billion and EBITDA of ZAR 3.7 billion, Cell C enters the market as a lean, asset-light, digitally focused telecom challenger.

Qualcomm Inc. (QCOM) 3.98%

Qualcomm delivered stronger-than-expected Q4 2025 results, with revenue rising to US $11.27 billion versus estimates of US $10.77 billion and adjusted EPS of US $3.00 beating the US $2.87 forecast. The performance was driven by surging demand for AI-enabled smartphone and automotive chips, lifting margins and offsetting softer handset volumes. The Snapdragon platform’s AI integration across mobile and PC devices supported growth, while diversification into automotive and IoT gained momentum. Management issued an upbeat FY 2026 outlook, citing accelerating adoption of edge-AI computing and global 5G device penetration.

McDonald’s Corporation (MCD) +2.16%

McDonald’s reported an estimated EPS of US $3.35 for Q3 2025, reflecting resilient global demand and effective cost management despite inflationary pressures. Comparable sales rose across all key markets, underpinned by menu innovation, digital engagement, and loyalty-app expansion. Strong value positioning helped sustain traffic as input costs stabilised, and operating margins remained healthy. Management reaffirmed guidance, highlighting steady growth across delivery and mobile channels. Continued investment in restaurant modernisation and marketing innovation positions the company well for the upcoming holiday season.

Yum! Brands Inc. (YUM) -0.11%

Yum! Brands posted a strong Q3 2025 performance, with adjusted EPS of US $1.58 exceeding expectations of US $1.47 and revenue of roughly US $1.96 billion. System-wide sales increased on pricing gains and new-store openings, especially across emerging markets. KFC delivered double-digit growth in Asia and Latin America, offsetting modest softness in U.S. traffic. Operating profit rose on disciplined cost control and accelerating digital adoption. Management cited robust global demand and expansion momentum as key supports for FY 2026 earnings resilience and long-term franchise strength.

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