Market Wrap: UK Stagnation, Tariffs Weigh on Giants, and Crypto Stabilizes
Date: February 12, 2026
Macroeconomics & Currencies
The UK economy is showing signs of stagnation, with Q4 GDP growth reported at just 0.1% quarter-on-quarter. This decline in GDP per capita indicates a real economic slowdown, increasing pressure on the Bank of England (BoE) to consider more aggressive interest rate cuts.
Despite the weak economic data, the British Pound (GBP) has shown resilience, gaining 0.1% against the US Dollar. However, the UK's high trade deficit poses a risk for the Pound, especially if the yield advantage over the USD and EUR diminishes.
The Hungarian Forint (EUR/HUF) is under pressure, rising 0.4% as falling inflation raises the likelihood of rate cuts, compounded by ongoing disputes with the EU that threaten the release of essential funds.
Commodities & Precious Metals
Oil prices have retreated below $65 per barrel, influenced by geopolitical tensions. The Israeli Prime Minister is reportedly urging the US to dismantle Iran’s ballistic missile program, while the US administration appears to favor a swift nuclear deal over escalating tensions.
In the precious metals market, gold has seen a pullback, trading below $5,100, while silver remains above $83 and platinum is just above $2,100. Notably, there has been a surge in silver sales to scrap yards in the US, which may help alleviate the global supply deficit through increased recycling volumes.
Earnings Season & Corporate News
Unilever's shares fell by 3% after reporting underlying sales growth of 4.2% year-on-year, but total revenue of €12.6 billion fell short of estimates.
Mercedes-Benz experienced a significant 57% drop in annual profits, primarily due to tariff-related costs estimated at $1.2 billion, with operating profit for 2025 reported at €5.8 billion, missing the forecast of €6.6 billion.
The tech sector faced challenges as Cisco's shares plummeted 7% in post-market trading following disappointing quarterly results, while Robinhood's stock dropped nearly 9% due to underwhelming crypto-related revenues. Investors are now focusing on upcoming reports from Applied Materials and Arista Networks.
Cryptocurrencies & Policy
Bitcoin (BTC) has stabilized above $67,000 after a sharp sell-off, while Ethereum (ETH) is rebounding after dipping below the $2,000 mark. In political news, Scott Bessent indicated that the investigation into Jerome Powell's standing will likely be managed by the Senate Banking Committee rather than the Department of Justice.
Conclusion
The market is currently navigating through a mix of economic stagnation in the UK, corporate earnings challenges, and geopolitical tensions affecting commodities. Meanwhile, cryptocurrencies are showing signs of stabilization after recent volatility.