Stellantis to drop plug in hybrids in North America from 2026

South African Market Summary

South African equities advanced on Friday, with the JSE All Share Index rising 0.96% to 118,110.22 points and the Top 40 Index also gaining 0.96% to close at 110,081.10 points. Performance was driven by a strong rally in resource stocks, with the Resources index jumping 3.33%, led by gains in Glencore. Political risk remained in focus after President Cyril Ramaphosa acknowledged the ANC’s poor service-delivery record ahead of local elections, while joint naval exercises involving Iran and Russia off South Africa’s coast heightened geopolitical concerns and the risk of strained relations with the United States.

European Market Summary

European markets closed the week on a firmer footing, with the UK’s FTSE 100 recording a record high close as global risk appetite improved following a US jobs report that kept prospective Federal Reserve rate cuts in play. Glencore led index gains on renewed merger speculation. UK labour-market data signalled cooling hiring conditions in December, although starting salaries accelerated, a dynamic likely to remain under scrutiny at the Bank of England. In the euro area, retail sales beat expectations and German industrial activity showed modest improvement, despite a sharp decline in exports highlighting ongoing external headwinds.

American Market Summary

US equities closed the week at record levels, with the S&P 500 advancing to a new high as gains in semiconductors, led by Broadcom, offset a softer-than-expected December jobs report. The data reinforced expectations for Federal Reserve rate cuts later this year, despite unemployment edging lower to 4.4%. All three major indices posted strong gains in the first full trading week of 2026, driven by materials and industrials. Valuations remain elevated ahead of earnings season, while uncertainty persists around potential Supreme Court action on US tariffs, supporting expectations of near-term market volatility.

Asian Market Summary

Asia-Pacific equities opened the week higher, tracking last week’s gains on Wall Street after US labour data showed a lower unemployment rate, reinforcing confidence in the resilience of the world’s largest economy. Japanese markets were closed for a public holiday, although political risk featured after reports that the ruling Liberal Democratic Party is preparing for a snap election, potentially as early as February. In corporate news, OmniVision Integrated Circuits surged on its Hong Kong debut after raising HK$4.8 billion in a secondary listing, highlighting ongoing investor appetite for select semiconductor names despite a mixed regional macro backdrop.

Currency Market Summary

The rand strengthened against the US dollar on Friday as investors awaited key US economic data, while broader dollar sentiment weakened into Monday. The greenback retreated from a one-month high after reports that US prosecutors had opened a criminal investigation into Federal Reserve Chair Jerome Powell, heightening political tensions and undermining confidence in the currency. The dollar index fell 0.3%, snapping a five-day rally. Safe-haven demand lifted gold to a record high, reflecting elevated geopolitical risk, including unrest in Iran, despite expectations that the Federal Reserve will hold rates steady later this month.

Commodity Market Summary

Oil prices were little changed on Monday as markets balanced potential supply risks from Iran against expectations of a near-term resumption of Venezuelan exports. Investor focus remained on escalating protests in Iran and possible US responses, which could disrupt output from the OPEC producer. However, sentiment was tempered by plans to restart Venezuelan shipments following political change in Caracas, with trading houses already mobilising logistics to move sanctioned crude. In contrast, precious metals strengthened sharply, with gold breaking above $4,600 per ounce and silver reaching record highs, supported by heightened geopolitical uncertainty and growing expectations of US interest-rate cuts.

Glencore plc (GLN) +10.56%

Glencore confirmed it is in preliminary discussions with Rio Tinto regarding a potential combination of some or all of their businesses, following recent media speculation. The talks may include an all-share merger, potentially structured through a court-sanctioned scheme of arrangement whereby Rio Tinto would acquire Glencore. The company stressed that discussions remain at an early stage, with no certainty that a transaction will proceed or that terms will be agreed. Under UK takeover rules, Rio Tinto must clarify its intentions by 5 February 2026.

The Foschini Group (TFG) +2.16%

The Foschini Group announced that Norges Bank has increased its shareholding in the company to 6.01% of the total issued ordinary share capital, triggering a disclosure under Section 122 of the Companies Act and the JSE Listings Requirements. The notification reflects continued institutional interest in TFG’s equity, with Norges now a meaningful shareholder. The board confirmed responsibility for the accuracy of the disclosure and has submitted the required filings to the Takeover Regulation Panel in accordance with regulatory requirements.

Stellantis N.V. (STLAM) -0.21%

Stellantis announced it will phase out plug-in hybrid models in North America from the 2026 model year, including the Jeep Wrangler, Grand Cherokee and Chrysler Pacifica, citing soft demand and a strategic shift in its electrification approach. The group will instead prioritise conventional hybrids and range-extended vehicles, which have shown stronger consumer uptake in the US. The decision reflects broader reassessment of EV investment amid policy changes and follows a major recall of Jeep plug-in hybrids linked to battery safety concerns.

Boeing Company (BA) +3.14%

Boeing is set to report its highest annual aircraft deliveries since 2018, signalling a stabilisation in production after years of safety, quality and supply-chain disruptions. Management plans to ramp up output of its core 737 MAX and 787 Dreamliner programmes in 2026, supported by improved regulatory confidence from the FAA, including progress on MAX 10 certification. Increased production visibility underpins expectations of a return to profitability this year, following seven consecutive loss-making years, and has contributed to a 36% share-price gain over the past 12 months.

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