European Stocks Rise, But Sentiment Remains Fragile
European stock markets edged higher on Tuesday (February 17th), as investors weighed the latest economic signals and corporate news. The main driver came from expectations of interest rate cuts, although this strengthening remained cautious as global markets awaited the next round of major data.
The Stoxx Europe Index rose 0.49%, Germany's DAX rose 0.86%, the FTSE 100 rose 0.67%, France's CAC rose 0.61%, and the Swiss Market Index rose 0.78%.
On the macro front, the UK gave a boost to the interest rate cut scenario after the labor market showed weakness: the unemployment rate rose to 5.2% (Oct–Dec 2025), while wage growth (including bonuses) slowed to 4.2%. In Germany, annual inflation rose to 2.1% in January from 1.8% in December, with Destatis highlighting sharper food price increases as a key driver.
At the issuer level, sentiment was mixed. Antofagasta actually fell despite posting a 52% surge in 2025 core earnings to a record $5.2 billion—the market is assessing details like dividends and capital expenditures. InterContinental Hotels Group posted better-than-expected quarterly performance on room metrics and highlighted the potential boost from the 2026 World Cup for a recovery in US travel. Meanwhile, Enagás warned that 2026 earnings could potentially decline after 2025 performance was boosted by non-recurring factors such as asset sales.
Healthcare sector highlights also contributed to the market narrative: the European Commission approved a weekly maintenance dose of Wegovy 7.2 mg for obese adults, opening up more aggressive therapy options for patients needing additional weight loss. At the same time, investors are monitoring other corporate actions—including news that Elliott is building a stake of more than 10% in Norwegian Cruise Line to drive change—that could trigger another sector rotation.
Source: Newsmaker.id
