European trading floors ended February at historic levels, outperforming Wall Street in investment results. Despite weakness in the banking sector, particularly in Italy following the publication of results by MPS and Mediobanca, sentiment remained optimistic thanks to the telecommunications segment and stabilizing inflation. Istat data indicates a slight recovery in Italian industry, supporting the building of a positive economic climate in the eurozone at the threshold of March.

Historic Peaks in Europe

European stock exchanges ended February at record levels, posting better results than US exchanges; the Milan index gained 3.7%.

Sell-off in the Banking Sector

Italian banks MPS and Mediobanca recorded declines after announcing business plans, dampening sentiment on the Milan stock exchange.

Recovery in Industry

Istat data indicates a 0.6% increase in industrial turnover in 2025, signaling an end to stagnation in production.

European capital markets closed February on a strong note, hitting historic records and showing greater resilience than American markets in the same period. The Milan index rose by 3.7% over the month, representing one of the best performances on the continent. Investors optimistically received the latest inflation data, which offers hope for monetary policy easing by central banks. However, the final sessions of February were marked by high volatility, triggered by concerns regarding the artificial intelligence sector and geopolitical tensions in the Middle East, particularly in Iran. This situation prompted some market players to exercise caution and realize profits ahead of the upcoming weekend. The banking sector came under supply pressure, which was particularly visible on the Milan stock exchange. Shares of banks MPS and Mediobanca recorded significant declines following the publication of industrial plans that did not fully satisfy analysts. In contrast, the telecommunications industry and so-called old economy became pillars supporting the indices. Simultaneously, commodity markets recorded stabilization; natural gas futures closed the week at 31.9 euros per megawatt-hour, a calming signal for energy-intensive industry in Europe. Since the eurozone debt crisis in 2011, European financial markets have undergone a series of structural reforms aimed at increasing transparency and stability in the banking sector. The Italian statistical institute Istat provided moderately positive data concerning the condition of the real economy. Turnover in Italian industry in 2025 increased by 0.6%, which after a difficult period of stagnation is read as a signal of a slow recovery. The surplus in non-EU trade amounted to 2.124 billion euros in January, despite a recorded decline in both imports and exports. In the background of these events, Chinese car manufacturer Leapmotor, backed by the Stellantis conglomerate, is intensifying its presence on the European market, utilizing the Fiat distribution network, heralding a new phase of competition in the electromobility sector. „A febbraio Europa sui massimi vince su Wall Street, Milano +3,7%” (In February, Europe wins over Wall Street at highs, Milan +3.7%) — Il Sole 24 Ore

Mentioned People

  • Giorgia Meloni — Prime Minister of Italy, mentioned in the context of discussions on European regulations concerning emissions.
  • Giorgio Parisi — Italian physicist, Nobel laureate, signatory of a scientists' letter regarding the ETS system.