South African stocks dip on softer Q3 GDP

South African markets ended lower on Tuesday, as softer domestic economic data weighed on sentiment. The FTSE/JSE All Share dipped 0.79%, while the Top 40 index fell 1.10%, dragged mainly by mining stocks, though resource and financial shares offered some support. The rand traded largely flat at R17.11 per USD, holding steady despite softer domestic growth and muted investor sentiment. Statistics South Africa said the economy expanded 0.50% quarter-on-quarter in Q3 — in line with forecasts but slower than the revised 0.90% growth in Q2. Trade, mining, finance, and government services contributed positively, while electricity, gas, and water subtracted from growth. Investors now turn to the Q3 current account data to be released on Thursday and foreign reserves on Friday. On the bond market, South Africa’s benchmark 2035 government bond strengthened, with yields falling 4.5 basis points to 8.46%, reflecting demand for safer assets amid cautious equity sentiment.

Across the Atlantic, US stocks rebounded on Tuesday, trimming Monday’s losses and finding firmer footing. Risk appetite was buoyed by a Bitcoin rebound, while AI and software names lent support to sentiment. Unlike previous sessions dominated by mega-caps, the upside was driven by a handful of standout movers, notably Boeing, Intel, and AppLovin. Traders remained focused on a busy run of economic data, including the delayed September PCE report, ahead of next week’s FOMC meeting. Markets continue to price in a 25 basis point rate cut, using incoming numbers to fine-tune expectations.

European stocks edged higher on Tuesday as investors digested the global rate outlook. The Eurozone’s STOXX 50 rose, while the broader STOXX 600 finished just above flat. Expectations that the European Central Bank will hold rates steady at upcoming meetings were reinforced after headline inflation in the bloc unexpectedly ticked up to 2.20% in November.

Meanwhile, mainland Chinese equities slipped, breaking a three-session winning streak as caution set in ahead of key policy meetings and a quiet earnings period. Analysts noted rotation into lower-valuation sectors after recent profit-taking, though sentiment remained broadly guarded, with many expecting volatility to persist into mid-2026. Markets are closely watching the upcoming Central Economic Work Conference and the December Politburo meeting for signals on next year’s policy priorities. With liquidity tightening toward year-end and few earnings catalysts, risk appetite remained muted, leaving room mainly for short-term speculative flows.

Commodity markets showed a mixed picture as investors weighed global growth signals and currency movements. Gold eased after hitting a six-week high in the previous session, with rising US Treasury yields and profit-taking weighing on prices. Spot gold fell 0.40% to $4 216.13/oz as investors awaited US economic data for clues on the Federal Reserve’s next moves. Oil held steady, supported by ongoing supply discipline among major producers, though sentiment remained cautious ahead of US inventory data and geopolitical developments.