Stock Markets February 27, 2026

European equities poised for eighth consecutive month of gains as earnings buoy sentiment

Corporate updates lift risk appetite even as AI disruption worries and new U.S. tariff cloud outlook

By Sofia Navarro
European equities poised for eighth consecutive month of gains as earnings buoy sentiment

European shares held steady on Friday, with the STOXX 600 up 0.1% and approaching record highs as better-than-expected corporate updates helped sustain investor risk appetite. Mining stocks led sector gains while lingering concerns over AI-driven business disruption and a newly imposed global tariff from the United States continued to weigh on sentiment. Delivery Hero and banking groups were notable movers during early trade.

Key Points

  • STOXX 600 up 0.1% at 634.16 by 0820 GMT and trading near record levels.
  • Mining sector led gains, rising 1.7%, while the benchmark eyes an eighth consecutive monthly gain.
  • Corporate updates from HSBC, Nestle and Capgemini helped bolster investor sentiment despite broader concerns.

European stock markets were steady on Friday and appeared on course to record a rare eighth straight month of gains, supported by corporate updates that exceeded market expectations and helped underpin investor risk-taking.

The pan-European STOXX 600 index was 0.1% higher at 634.16 points by 0820 GMT, trading close to record territory. Sector action was led by miners, which rose 1.7% and produced the largest sectoral advance on the day.

Traders noted that the benchmark is positioned to complete its longest monthly winning streak since the mid-2012 to 2013 period. Market participants cited improving corporate outlooks across several large European names as a key factor sustaining the rally.

However, the backdrop remained mixed. Much of February was marked by worries that new artificial intelligence tools could unsettle established business models and erode profitability for some firms. At the same time, trade uncertainty stemming from a new global tariff imposed by U.S. President Donald Trump continued to add ambiguity to the outlook.

Against that uneasy macro backdrop, earnings-related updates from major European firms provided offsetting reassurance. Announcements from HSBC, Nestle and Capgemini were singled out by investors as helping to lift sentiment across markets.

Not all early movers were winners. Online food delivery platform Delivery Hero fell 5.2% after reporting annual gross merchandise value (GMV) that was slightly below market expectations - a result the company attributed to heightened competitive pressure and a challenging economic environment.

Banking stocks were under pressure, slipping in excess of 0.4% across the sector. Market watchers are parsing potential spillovers after Market Financial Solutions (MFS), a mortgage-finance firm, entered a UK form of insolvency this week - an event investors are tracking for any implications to lenders' balance sheets and credit exposure.


Overall, markets balanced encouraging corporate news against persistent structural and policy uncertainties, leaving the STOXX 600 steady as it aimed for an uncommon run of monthly gains.

Risks

  • Potential profit erosion for some firms due to disruption from new AI tools - impacts technology-exposed and incumbent sectors.
  • Trade uncertainties following a new global tariff imposed by the United States - affects exporters and globally exposed sectors.
  • Credit and balance-sheet exposure for banks related to Market Financial Solutions (MFS) entering a UK form of insolvency - impacts banking and mortgage-related financial institutions.

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