Market wrap: European indices gain despite weakness on Wall Strete 🚩German ZEW lower than expected

Sentiment in European markets is mostly optimistic, with the three major indices — the FTSE, DAX and CAC40 — posting modest gains; commodity-sector stocks are performing particularly well. At the same time, U.S. index futures point to a lower open on Wall Street, with the US500 and US100 down around -0.1% to -0.3%.

Germany’s ZEW economic sentiment came in well below forecasts, while the euro area reading showed a slight decline versus the previous month. Earlier, Germany’s CPI inflation print indicated a 2.1% y/y increase and a -0.1% m/m drop — in line with expectations. UK labour market data were weak: the unemployment rate rose from 5.1% to 5.2%, and employment change showed a decline of 11k jobs (though a drop of as much as 20k had been expected).

• Eurozone – ZEW Expectations Index: 39.4 (Previous: 40.8)

• Germany – ZEW Current Conditions: -65.9 (Forecast: -65.9, Previous: -72.7)

• Germany – ZEW Economic Sentiment: 58.3 (Forecast: 65.2, Previous: 59.6)

Silver is down more than 2%, while gold is retreating by 1% to USD 4,930 per ounce. Sentiment in the crypto market remains very weak; Ethereum is trading below USD 2,000, and Bitcoin is consolidating near USD 68,000.

The latest Bank of America Fund Manager Survey (February 2026) suggests global investors remain “decidedly bullish,” but further upside in asset prices in Q1 is becoming harder. The survey covers roughly 200–400 institutional fund managers (hedge funds, pension funds and mutual funds) overseeing hundreds of billions of dollars.

• Commodity overweight at the highest level since May 2022

• Equity overweight at the highest level since December 2024

• Most optimistic on corporate earnings since August 2021, yet a record share of investors say companies are “overinvesting”

• An AI bubble bursting is cited as the top tail risk

• Long gold is the most crowded trade

• Record shorts in the U.S. dollar — the most bearish stance since 2012. Investors are notably negative on USD due to the de-dollarisation narrative (not fully supported by the data) and dovish expectations for the Fed.

In 2026, the dollar could still rebound, for example if the U.S. labour market improves or if other major central banks turn more dovish in response to weakening macro data.

(Market update in progress)

Source: xStation5