Europe’s STOXX 600 hits record high on earnings boost; ECB in focus

Published Wed, Feb 18, 2026 · 06:11 PM

THE STOXX 600 rose 0.8 per cent to hit a record high on Wednesday (Feb 18) as defence and banking shares gained while investors assessed corporate updates and reports of leadership changes at the European Central Bank (ECB).

The pan-European index was trading at 626.36 by 0945 GMT, with all major regional benchmarks in the black. The defence sector climbed 2 per cent, with BAE Systems adding nearly 2.6 per cent after reporting a better-than-expected jump in full-year operating profit, as global demand swelled its order backlog to a record £83.6 billion pounds (S$143.4 billion).

The broader sector also gained after a report on Tuesday said Germany was preparing to acquire a minority stake in KNDS, the Franco-German maker of the Leopard tank, ahead of its planned listing this year.

Meanwhile, a Financial Times report said Christine Lagarde plans to step down as president of the European Central Bank (ECB) before the 2027 French presidential elections.

“We expect a limited impact of the new ECB president as EU leaders historically have aimed to strike a balance within the ECB’s executive board between doves and hawks,” analysts at Danske Bank said in a note.

“Even with the early departure, EU leaders have plenty of time to discuss and select a new president as part of the large shift taking pace in ECB top positions the coming two years.”

The central bank has left interest rates steady over the past couple of meetings, and the focus is now on if inflation could undershoot its 2 per cent target as the euro continues to strengthen.

Sentiment was also stabilising this week after a global sell-off since late January hurt multiple sectors over artificial intelligence disruption concerns. Banks rose more than 1 per cent each, rebounding from sharp losses in the week before. REUTERS