European Stocks Rise Slowly, Wage Data Key
European stocks edged higher on Tuesday (February 17th), with investors picking up on one key signal from the UK: wage pressures are cooling. Index movements were cautious, as the market chose to reassess the direction of interest rates and a series of major company performance reports due later that day.
From the UK, data from the Office for National Statistics (ONS) showed that wage growth slowed by the end of 2025. Average earnings (excluding bonuses) rose 4.2% annually in the fourth quarter, down from 4.4% previously, while the unemployment rate rose to its highest level outside the pandemic period since 2015. These figures reinforce the perception that labor cost pressures are easing.
For the market, "cooler wages" open up room for the Bank of England to continue easing policy if other indicators are supportive. This, in turn, has bolstered European equities, especially as investors are sensitive to any hints that could change interest rate expectations in the coming months.
On the corporate front, the spotlight fell on Antofagasta, which posted a 52% jump in 2025 core earnings due to a boost in copper prices. However, its stock remained under pressure as the market reassessed its outlook and commodity price factors. Meanwhile, InterContinental Hotels Group (IHG) reported fourth-quarter room revenue that beat expectations, supported by strong demand in several regions, providing a boost to the travel sector.
Spain also came under scrutiny after Enagás predicted lower 2026 earnings compared to 2025, given that last year was driven by one-off factors such as asset sales and arbitration rulings. Nevertheless, the market remained closely monitoring the details of the company's performance guidance and strategic direction amidst the energy transition and regulatory dynamics.
Meanwhile, outside Europe, news of activist Elliott building a stake above 10% in Norwegian Cruise Line added spice to the global "corporate action" trend—given that activist investors often trigger changes in strategy and governance. This combination of softening macro data and corporate headlines is what led European markets to edge higher, but it still felt "selective"—the market bought strong stories and held back on questionable ones.
Source: Newsmaker.id
