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

Pan-European index is at 626.36 by 0945 GMT, with all major regional benchmarks in the black

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.”

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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

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