Market Wrap Summary - February 20, 2026
Overview
The European markets are showing positive momentum, with business activity accelerating as indicated by various economic indicators. The EU50 index is up by 0.28%, reflecting a general optimism in the market.
Economic Highlights
- Eurozone Wages: Negotiated wages in the Eurozone increased by 3% in Q4 2025, consistent with broader wage growth trends.
- UK Retail Sales: Retail sales surged by 4.5% year-on-year and 1.8% month-on-month in January, marking the strongest performance in nearly two years. The non-food sector led this growth, while department stores experienced a slight decline.
- German PPI: Producer prices fell by 3.0% year-on-year in January, primarily due to an 11.8% decrease in energy costs. Excluding energy, PPI rose by 1.2% year-on-year.
- Eurozone PMI: The Composite PMI rose to 51.9 in February, reaching a three-month high. Manufacturing PMI hit a 44-month peak, indicating strong growth, although employment saw a slight decline.
Foreign Exchange Market
The British Pound (GBP) rebounded from recent lows, supported by solid retail data. The New Zealand Dollar (NZD) lagged due to political risks and comments from the RBNZ chief regarding growth without inflation. Overall, FX volatility remained low.
Indices and Company Updates
- European Indices: The markets ended the week positively, with France and Spain leading gains. The DAX also showed a slight increase.
- Aston Martin: The company issued a profit warning, projecting a larger EBIT loss than previously expected. Sales dropped by 10%, and shares have halved in value over the past year.
- Air Liquide: Shares rose by 3.6% following an earnings beat, with a dividend hike of 12% and a new margin improvement goal set for 2027.
- Siegfried Holding: Shares fell by 7.8% due to weak guidance for 2026, despite solid 2025 EBITDA.
- Moncler: Shares surged by 13% on results that significantly exceeded estimates, driven by strong demand in Asia.
Market Sentiment
The increase in risk appetite has negatively impacted more defensive sectors such as Health Care and Energy, indicating a shift in investor sentiment towards growth-oriented sectors.
Conclusion
The market is showing signs of recovery and optimism, driven by positive economic data and corporate earnings. Investors are encouraged to stay informed and consider the implications of these developments on their investment strategies.