Finance
Europe's STOXX 600 hits record high on earnings boost; ECB in focus
Published by Global Banking & Finance Review®
Posted on February 18, 2026
3 min readLast updated: February 18, 2026
Quick Summary
STOXX 600 index rises as defence stocks gain on BAE results. ECB leadership changes are in focus, with Lagarde potentially stepping down.
STOXX 600 Reaches All-Time High Driven by Earnings and Banking Gains
Market Overview and Key Drivers
By Avinash P and Johann M Cherian
Feb 18 (Reuters) - The STOXX 600 rose 0.8% to hit a record high on Wednesday as defence and banking shares gained while investors assessed corporate updates and reports of leadership changes at the European Central Bank.
The pan-European index was trading at626.36 points by 0945 GMT, with all major regional benchmarks in the black.
Sector Performance
The defense sector climbed 2%, with BAE Systems adding nearly 2.6% 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 ($113.40 billion).
Central Bank Leadership Changes
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.
Investor Sentiment and Rebounds
Meanwhile, a Financial Times report said Christine Lagarde plans to step down as president of the European Central Bank 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% target as the euro continues to strengthen.
Sentiment was also stabilizing this week after a global selloff since late January hurt multiple sectors over AI- disruption concerns. Banks rose over 1% each, rebounding from sharp losses in the week before.
Among others, Glecore climbed 3.2% after the miner announced it would return $2 billion to shareholders despite reporting slightly lower earnings.
Mediobanca added 6.8% after Monte dei Paschi di Siena (MPS) said it will take full control of the lender, ending weeks of uncertainty over the future of the merchant bank.
An 8.6% drop in Bayer limited gains, after the German pharmaceutical firm said it had reached an agreement worth as much as $7.25 billion to resolve tens of thousands of lawsuits claiming that its Roundup weedkiller caused cancer.
Chemicals and foods ingredients maker IMCD tumbled 14% after fourth quarter results missed expectations, while Swiss dental implant maker Straumann gained 7.7% after strong forecasts.
(Reporting by Avinash P and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee )
Key Takeaways
- •STOXX 600 index rose 0.4% led by defence stocks.
- •BAE Systems reported strong earnings, boosting shares.
- •ECB leadership changes speculated with Lagarde's potential exit.
- •Carrefour's operating profit decline impacted shares.
- •Straumann forecasts strong sales growth, boosting shares.
Frequently Asked Questions about Europe's STOXX 600 hits record high on earnings boost; ECB in focus
1What is the STOXX 600 Index?
The STOXX 600 Index is a stock index that represents large, mid, and small capitalization companies across 17 European countries, reflecting the performance of the European equity market.
2What is monetary policy?
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation and stabilizing currency.
3What is an operating profit?
Operating profit is the profit a company makes from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of the company's operations.
4What is an order backlog?
An order backlog is a measure of the number of orders that a company has received but has not yet fulfilled. It indicates future revenue potential and demand for a company's products or services.
