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Why are European markets high today?

In this post:

  • Most major stock indexes across Europe traded higher, with the STOXX600, FTSE MIB, DAX, CAC, SMI, IBEX 35, and PSI20 posting gains while a few markets like HEX, BEL 20, and OMXS30 slipped.

  • UK data showed unemployment rose to 5.2%, payrolled workers fell to 30.3 million, and average earnings growth slowed to 4.2%, pushing sterling down to $1.359.

  • British gilt yields declined, with the 10 year at 4.368% and the 2 year at 3.563%, while German, Italian, and French 10 year yields also edged lower.

Stocks across Europe traded higher today as investors reacted to new labor data from the UK, steady growth numbers from the EU, and a strong trade surplus that came in at the end of 2025.

Europe’s STOXX600 came in at 619.45 with a 0.15% gain. The FTSE 100 rose almost 0.5% to 10,515.35. The FTSE MIB added 0.43% to 45,614.98. The IBEX 35 grew 0.43% to 17,924.3. The DAX reached 24,832.68 with a 0.13% rise.

The CAC 40 added 0.06% to 8,321.7. The AEX added 0.02% to 993.25. Portugal’s PSI20 posted one of the strongest gains at 0.83% to 9,133.82. Switzerland’s SMI gained 0.45% to 13,716.77.

Meanwhile, the BEL 20 dipped 0.01%, Finland’s HEX crashed a bit by 0.07%, Sweden’s OMXS30 fell 0.2%, and Denmark’s OMXC 25 rose 0.74% to 1,813.53.

UK labor market data hit the pound and lift EU-located stocks

The UK posted tough job numbers that pushed the pound lower, as its jobless rate rose to 5.2%, the highest level in five years. Payrolled workers dropped to 30.3 million in January 2026. That was 134,000 fewer than a year earlier and 11,000 fewer than the previous month.

The employment rate for people aged 16 to 64 was 75% between October and December 2025. It was down from the previous quarter but unchanged compared with a year earlier.

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Regular and total earnings from wages in the UK increased by 4.2% in Q4 2025, while public sector earnings rose to 7.2%. Private sector earnings rose 3.4%. The public sector number was shaped by early pay rises in 2025 that will fade out in later reports.

The pound reacted fast. GBP/USD slipped 0.242% to 1.359. The pound also fell 0.2% against the Euro. Currency traders in Europe watched this closely because sharp currency weakness can pull risk appetite in different directions.

The rest of the currency board stayed mixed. EUR/USD came in at 1.185. EUR/GBP sat at 0.871 with a 0.28% rise. EUR/JPY dropped to 181.07. USD/CHF sat at 0.769. EUR/CHF sat at 0.911.

Bond yields in the UK fell after the labor report. The 10-year gilt dropped to 4.365% with a 0.037 fall. The 2-year gilt went to 3.563%. Yields across Europe followed in quiet fashion. The Bund 10-year landed at 2.736%. The Italian 10-year landed at 3.358%. The French 10-year landed at 3.322%. Lower yields helped stocks hold their gains across Europe.

Fresh EU and eurozone data showed 0.3% growth in the fourth quarter of 2025. Full year growth reached 1.5% in the euro area and 1.6% in the EU. Employment increased 0.2% in both regions. These numbers kept traders steady across Europe because they fit expectations.

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The trade surplus helped even more. The eurozone recorded a €12.6 billion surplus in December 2025, a slight decrease from the €13.9 billion it had in December 2024.

EU exports meanwhile reached €234 billion, a 3.4% rise from €226.3 billion in December 2024. Strong export demand added extra support across Europe, even while the UK data added stress on the currency side.

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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