SpaceX targets a 2026 IPO above $25 billion and a trillion dollar valuation.

South Africa

South African equities edged lower on Tuesday, with the Top 40 down 0.05% to 103,102.69 points and the All Share index slipping 0.09% to 110,730.56 points. Consumer confidence improved to -9 in the fourth quarter, the strongest reading of 2025, supported by firmer holiday-season spending appetite. Fiscal indicators remained constructive as the state raised R11.8 billion in its first infrastructure-bond auction, attracting more than twice the targeted demand across 10- and 15-year maturities. SARS also reported a 16.7% year-on-year increase in compliance-driven revenue to R304 billion, reflecting strengthened enforcement measures.

Europe

European equities were broadly unchanged on Tuesday as investors took a cautious stance ahead of the U.S. Federal Reserve’s policy meeting. Germany’s DAX rose 0.5%, while France’s CAC 40 fell 0.7%. Defence stocks outperformed after reports that German lawmakers are set to approve €52 billion in procurement contracts, lifting names such as Rheinmetall, RENK and Hensoldt. The Bank of France expects modest 0.2% GDP growth in Q4, while Germany anticipates a calendar-related boost to 2026 output due to an increase in working days following two years of economic contraction.

United States

U.S. equities edged lower on Tuesday as investors braced for a potentially hawkish tone from the Federal Reserve, despite widespread expectations of a 25-basis-point rate cut. JPMorgan weighed on the market after warning of significantly higher 2026 expenses. Mixed macro signals added to uncertainty: job openings rose slightly but hiring remained muted, while small-business survey data indicated plans for future hiring. Markets now see an 87% probability of a cut, though expectations of a subsequent pause have strengthened. Trading in technology shares was volatile after conflicting developments on U.S.–China chip export policy, including proposed fees on Nvidia’s H200 shipments and possible Chinese restrictions.

Asia

Asia-Pacific markets declined on Wednesday as investors assessed China’s latest inflation data and awaited the Federal Reserve’s policy decision. China’s consumer inflation reached a 21-month high in November due to rising food prices, while deeper factory-gate deflation underscored fragile domestic demand despite the economy remaining on track to meet its “around 5%” growth target. Regional data were mixed: South Korea’s unemployment rate edged up to 2.7%, while Taiwan posted its strongest export growth in more than 15 years, with shipments surging 56% year-on-year on sustained global demand for chips and AI-related technology.

Commodities

Oil prices were steady on Wednesday after a 1% decline in the prior session, with sentiment constrained by concerns that supply continues to outpace demand. Markets also monitored developments in Russia–Ukraine peace efforts, as Ukrainian President Zelenskiy signalled progress on a refined proposal that could, if successful, lead to sanctions relief and unlock additional Russian supply. The U.S. Energy Information Administration raised its 2025 output forecast to a record 13.61 million barrels per day but trimmed its 2026 estimate. In precious metals, gold firmed ahead of the Federal Reserve’s policy announcement, while silver extended its record-breaking rally above $60 an ounce.

Currencies

The rand was steady on Tuesday after South Africa’s inaugural issuance of infrastructure and development finance bonds raised R11.795 billion, with authorities aiming to channel proceeds into growth-enhancing projects and improved service delivery. Currency markets were otherwise subdued ahead of the U.S. Federal Reserve’s policy decision, where investors broadly expect a rate cut. The yen weakened sharply overnight, pressured by wide rate differentials despite expectations that the Bank of Japan will tighten policy next week. Policy uncertainty increased amid prospects of further fiscal stimulus in Japan, while Australia’s central bank warned that persistent inflation could necessitate additional rate hikes.

British American Tobacco PLC. (BTI) +0.63%

British American Tobacco reaffirmed its FY25 trajectory, expecting approximately 2% revenue and adjusted operating-profit growth, supported by accelerating double-digit second-half gains in New Category revenue. Strong U.S. performance, underpinned by combustibles and Velo Plus—set for full-year profitability—combined with improving Vuse volumes amid enhanced enforcement against illicit vapour products, added momentum. While AME delivered solidly, APMEA remained constrained by fiscal and regulatory pressures. The Group maintained confidence in achieving its 2026–mid-term growth algorithm and announced a £1.3 billion FY26 share buy-back, supported by robust cash generation and ongoing deleveraging.

BHP Group Limited (BHG) -0.01%

BHP entered a US$2 billion infrastructure agreement with Global Infrastructure Partners, securing funding for a 49% stake in a new trust that will hold BHP’s share of the Western Australia Iron Ore (WAIO) inland power network while BHP retains 51% ownership and full operational control. The structure provides long-term capital efficiency through a 25-year tariff arrangement and does not affect existing joint-venture terms or WAIO asset ownership. Proceeds will be assessed under BHP’s capital-allocation framework. Completion is expected in FY2026, subject to regulatory approvals.

Thungela Resources Limited (TGA) +4.03%

Thungela expects to exceed its South African export production guidance with approximately 13.7Mt for FY2025, supported by the successful ramp-up of Annea, strong Mafube performance and improved Transnet rail delivery. Ensham is set to deliver 3.8Mt, aided by successful marketing of lower-quality stockpiles. Despite weaker seaborne coal prices, elevated discounts and macroeconomic headwinds, cost discipline and sustained capital investment have supported resilience. Portfolio optimisation continues through targeted disposals, while shareholder returns remain prioritised. Net cash is forecast at R4.9–R5.2 billion, with annual results due in March 2026.

Stefanutti Stocks Holdings Limited (SSK) 0.00%

Stefanutti Stocks announced that it has received R580 million (excluding VAT) under the Kusile power project Settlement Agreement. The Group will allocate at least R500 million of this amount toward reducing its outstanding Facility with Standard Bank by the end of February 2026. The payment strengthens balance-sheet stability and supports ongoing efforts to streamline financial obligations following updates provided in the interim results to 31 August 2025.

Merafe Resources Limited (MRF) -0.91%

Merafe announced that the Glencore-Merafe Chrome Venture has signed a Memorandum of Understanding with Eskom to pursue a viable long-term energy solution for the ferrochrome industry by 28 February 2026. As a result, the Venture will seek to extend the section 189/189A Consultation Process to the same date, reinforcing its commitment to constructive engagement with government and stakeholders. The extension does not affect Project Phoenix, which continues as planned to improve operational efficiency. Merafe will maintain transparent communication as discussions progress.

SpaceX (Planned IPO)

SpaceX is reportedly preparing for a 2026 IPO targeting more than $25 billion in proceeds and a valuation above $1 trillion, positioning it to become only the second company after Saudi Aramco to debut at that scale. Discussions with banks suggest a June–July listing window, with capital earmarked for developing space-based data centres and related chip procurement. Revenue is projected at $15 billion in 2025, rising to up to $24 billion in 2026, driven primarily by Starlink. A recent secondary-sale valuation near $800 billion was dismissed by Musk as inaccurate.

Home Depot Inc. (HD) -1.33%

Home Depot guided to softer-than-expected fiscal 2026 performance, forecasting flat to 2% comparable-sales growth and flat to 4% EPS expansion, both below analyst expectations. The retailer highlighted persistent consumer caution, subdued DIY demand and pressure on big-ticket purchases amid elevated borrowing costs and uneven U.S. housing activity. Despite moderating mortgage rates, management does not yet see a catalyst for recovery and expects a deeper profit decline in fiscal 2025. Broader home-improvement demand remains constrained, with Home Depot’s share price down around 10% year-to-date versus a 16% gain in the S&P 500.

CVS Health Corporation (CVS) +2.23%

CVS Health raised its 2025 profit outlook for the fourth time, signalling continued progress in its turnaround strategy and a stronger operational footing. Management highlighted renewed focus on consumer trust, tighter cost control and exits from underperforming markets, alongside the launch of a new integrated consumer app designed to enhance engagement and unlock new revenue opportunities. Shares have surged more than 70% year-to-date. CVS now expects 2026 adjusted EPS of $7.00–$7.20 and revenue of at least $400 billion, supported by margin recovery in Aetna and CVS Caremark, and its planned withdrawal from Obamacare plans in 2026.

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