FedEx posts Q1 beat on cost savings and US volume growth, but FY26 outlook trails expectations

South Africa

The Top 40 rose 0.07% to 98,038.5, while the All Share gained 0.05% to 105,422.8. The SARB held the repo rate at 7% in a closely split vote (4–2), marking its first decision since shifting inflation targeting towards the lower end of the 3–6% band. Governor Kganyago noted that the impact of 125 bps in rate cuts since September 2024 is still playing out. Inflation slowed to 3.3% in August, supporting the cautious stance.

Europe

European equities closed higher, with the STOXX 600 gaining 0.79% to 554.97, led by a 4.1% rally in tech—the sector's strongest day since April. Semiconductor stocks surged after Nvidia announced a $5bn investment in Intel. The Bank of England kept rates steady at 4% following a 25 bps cut in August. The FTSE 100 rose 0.2%. Political unrest in France persisted amid protests against austerity measures proposed by President Macron’s administration. SIG shares slumped on a profit warning, partially offsetting broader market gains driven by the global tech rebound and easing expectations.

United States

Wall Street posted record closes following the Fed’s 25 bps rate cut. Intel soared 22.8%—its best day since 1987—after Nvidia announced a $5bn investment. The S&P 500 and Nasdaq were buoyed by renewed AI optimism and easing monetary policy. Jobless claims fell, but the broader labour market showed signs of cooling. The Fed’s dovish shift has fuelled expectations for further cuts, with markets pricing in around 44 bps of easing by end-2025. Despite a weaker labour backdrop, investor sentiment remains strong, supported by falling yields and sustained demand for tech-linked equity exposure.

Asia

Japanese core inflation eased to 2.7% in August, the slowest in nine months, though still above the BoJ’s 2% target. The central bank is expected to keep rates unchanged at 0.5%. China’s PBoC left key rates steady, opting for policy restraint amid strong export data and a stock market rally. India reported a 9% y/y rise in net direct tax collections to ₹10.8tn. Policymakers across Asia appear reluctant to follow the Fed’s easing path, as domestic indicators remain resilient. Currency markets were mostly steady, with limited pressure on Asian central banks to respond immediately.

Currencies

The South African rand held steady following the SARB’s rate decision, with policymakers adopting a wait-and-see approach. The U.S. dollar inched higher in Asian trading, reversing some losses from earlier in the week. The dollar index rose 0.1% as markets adjusted to a more gradual Fed easing path. USD/JPY edged up ahead of the BoJ decision. Despite recent weakness, the greenback remains on track for a third consecutive weekly decline. Investors are now looking for fresh macro catalysts, with central bank divergence and inflation data likely to guide short-term FX positioning.

Commodities

Gold prices stabilised after profit-taking pulled them back from record highs. The metal was flat Friday as the Fed’s cut fell short of investor expectations for aggressive easing. Traders are watching for further policy signals before re-entering positions. Oil prices were little changed after a weaker session, pressured by a surprise 4 million barrel rise in U.S. distillate inventories—well above the 1 million barrel forecast. Demand concerns persist despite the Fed's move, particularly in the U.S., where high stockpiles and economic headwinds continue to cap bullish momentum in the energy complex.

Bytes Technology Group plc (BYI) -1.36%

Bytes Technology Group plc delivered a resilient H1 FY26 performance, with Gross Invoiced Income of approximately £1.33bn, Gross Profit of at least £82m, and Operating Profit of no less than £33m—broadly in line with expectations outlined at the July 2025 AGM. The Group ended the period with net cash of c.£82m after paying £41m in dividends and initiating a £25m share buyback. CEO Sam Mudd cited a strong pipeline and continued momentum, underpinned by structural growth drivers in cloud, cyber security and AI. Interim results will be published on 14 October 2025.

Finbond Group Limited (FGL) +6.12%

Finbond Group expects a significant turnaround in its interim results for the six months ended 31 August 2025. Earnings per share (EPS) are anticipated to rise by over 100% to at least 5.0 cents, compared to a loss of 2.3 cents in the prior period. Headline earnings per share (HEPS) are also expected to improve by more than 100%, reaching at least 0.5 cents versus a 2.0 cent loss previously. Final EPS/HEPS ranges will follow in a further trading statement. Interim results are due on or before 31 October 2025.

SA Corporate Real Estate Limited (SAC) +1.31%

SA Corporate Real Estate reported solid interim results for the six months ended 30 June 2025. Distribution per share rose 7.5% to 13.01 cents, with a 92.5% payout ratio. Distributable income per share increased 4.6% to 14.07 cents. Like-for-like net property income grew 4.9% to R718.1m, while portfolio vacancies remained low. The Group’s diversified portfolio comprises 250 properties valued at R17.7bn, with R1.8bn exposure in Zambia. Despite slightly lower EPS and HEPS, cash generation remained strong. A distribution of 13.01407 cents per share was declared for H1 2025.

FedEx Corporation (FDX) +0.32%

FedEx delivered a stronger-than-expected Q1 performance, reporting adjusted earnings of $3.83 per share (vs $3.59 consensus) and revenue of $22.24bn, aided by a 5% increase in domestic volumes and a 2% rise in revenue per package. Cost-cutting efforts, including facility closures and a $1bn savings plan, supported margins, which rose to 6% (from 5.2%). However, international volumes declined and the end of "de minimis" tariff exemptions created a $150m quarterly revenue headwind. FY26 EPS guidance of $17.20–$19.00 came in marginally below expectations. $500m in share repurchases was completed.

DuPont de Nemours Inc. (DD) +1.72%

DuPont revised its FY25 outlook to reflect major portfolio changes, forecasting net sales of $6.87bn following the planned spin-off of Qnity Electronics (effective 1 November) and divestiture of the Aramids unit. Aramids, including Kevlar, was sold to Arclin for $1.8bn. Q3 adjusted EPS guidance was reduced to $1.06 (from $1.15), citing transaction-related impacts. The company had previously guided for $12.85bn in FY25 revenue. DuPont is undergoing a broad reorganisation to streamline its core focus areas and will provide a revised full-year earnings outlook in its upcoming Q3 results announcement.

Lennar Corporation (LEN) -0.08%

Lennar reported a 46% year-on-year decline in Q3 earnings to $2.29 per share, with revenue down 8.7% to $8.25bn, missing analyst expectations ($9bn). Profitability was pressured by elevated interest rates, affordability constraints, and increased use of sales incentives, including mortgage rate buydowns. The homebuilder guided for Q4 deliveries between 22,000 and 23,000 units, below Street expectations of 25,000+, as demand softens amid macroeconomic uncertainty. Despite headwinds, Lennar noted it is not materially impacted by tariffs and remains focused on protecting margins through cost management and targeted adjustments to its product mix.

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