European Stock Exchanges Hit Records in February Despite AI Uncertainty and Iran Tensions

February 2026 will go down in the history of European capital markets as a period of exceptional bull run. The main indices of the old continent reached record levels, showing greater growth dynamics than Wall Street. In Milan, a 3.7% increase was recorded, an impressive result in the face of growing doubts about the profitability of the artificial intelligence sector. The last session of the month, however, brought some calming and correction, especially in the banking sector, where MPS and Mediobanca shares fell after the publication of new industrial plans. Investors are showing a high degree of caution, stemming from the tense situation in Iran and anticipation of the next steps from the Federal Reserve. European financial markets have been trying for a decade to reduce the gap with American stock exchanges, which have dominated global turnover thanks to technology giants from Silicon Valley. Simultaneously with stock market optimism, positive signals are coming from the real economy. The Italian institute Istat reported a slight revival in industrial turnover, which increased by 0.6% in 2025. The Veneto Est region is performing particularly well, where manufacturing shows clear signs of recovery. On the energy front, the situation remains stable – futures contract prices for gas fell to 31.9 euros per megawatt-hour, offering hope for further curbing of cost pressure for businesses. Meanwhile, the Eni corporation recorded record profits, allowing the company to increase spending on new drilling and exploration of deposits. +3.7% — increase of the Milan stock exchange index in February In the political-economic sphere of the European Union, a dispute over the future of climate policy is growing. Italian Prime Minister Giorgia Meloni is facing an appeal from 150 scientists, including Nobel laureate Giorgio Parisi, who oppose the suspension of the ETS system. Meanwhile, in the automotive market, the expansion of new players is visible – the Chinese brand Leapmotor, thanks to cooperation with the Stellantis group, is dynamically building a sales network in Europe, utilizing Fiat's infrastructure. This is a clear signal of changes in the balance of power in the European electric car market, where Asian competition is increasingly boldly challenging domestic producers under the banner of joint ventures. „La scienza non può essere presa in considerazione solo quando è conveniente per la politica immediata.” (Science cannot be taken into consideration only when it is convenient for immediate politics.) — Giorgio Parisi