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Weekly Market Review - 16-02-2026

  • Feb 16
  • 4 min read

Global markets navigated a mixed week as investors balanced resilient UK equity performance against softer US returns and persistent inflation pressures. Fresh US inflation data reinforced the view that price growth remains above target, while central bank commentary signalled a continued data-dependent approach to policy. Meanwhile, shifts in US sustainability regulation and renewed diplomatic developments in the Middle East added further layers to an already complex global backdrop, keeping market sentiment cautious but measured.



Market Recap.


UK equities moved modestly higher over the week, with the FTSE 100 ETF rising 0.59%, supported by relative resilience in large-cap stocks despite a mixed global backdrop.


US equity markets were more uneven over the same period. The Dow Jones Industrial Average ETF declined 0.43%, while the S&P 500 ETF fell 1.06%. Technology shares faced additional pressure, with the Nasdaq 100 ETF dropping 1.43% over the week, reflecting a more cautious tone among investors.

 


News.


Marks & Spencer has been named the UK’s favourite supermarket for the fifth consecutive time in a survey conducted by consumer watchdog Which?. The annual customer satisfaction survey placed M&S at the top of the rankings, with shoppers highlighting product quality and overall in-store experience as key strengths. Despite being viewed by some respondents as more expensive than competitors, the retailer outperformed larger grocery chains on overall ratings. The findings come against the backdrop of ongoing cost-of-living pressures, with consumers continuing to balance price considerations with quality and service.



Inflation. 


US inflation increased in January, with consumer prices rising on both a monthly and annual basis, according to data released by the Bureau of Labor Statistics. Headline CPI accelerated compared with December, while core inflation, which excludes food and energy, also remained elevated. The data indicated that price pressures persist across key categories, reinforcing the view that inflation remains above the Federal Reserve’s long-term target. Markets responded cautiously following the release as investors assessed the implications for the interest rate outlook.



Central Banks.


European Central Bank President Christine Lagarde pushed back against proposals to use tax measures to prevent capital outflows, underscoring the ECB’s focus on monetary policy stability and financial market functioning, according to Bloomberg. Lagarde said policymakers remain committed to maintaining price stability and are “keeping a close eye on exchange rate developments” as part of their deliberations, emphasising that the ECB does not target exchange rates but monitors them given their potential impact on inflation dynamics. The Governing Council recently left interest rates unchanged, with Lagarde noting that policy is in a “good place” and that decisions will continue to be data dependent amid elevated economic and geopolitical uncertainties. Markets have taken the tone as reinforcing an environment of cautious central bank guidance while awaiting further incoming data.



Commodities.


Commodity markets showed a mixed performance over the week, with notable volatility in precious metals and relative stability in energy prices. Gold was trading around $4,970 per ounce and silver near $88 per ounce, reflecting ongoing price swings in metals markets. Precious metals have oscillated after sharp moves earlier in the year, and both gold and silver remain sensitive to broader market forces. In energy markets, crude prices were relatively steady, with WTI crude around $63 per barrel and Brent crude near $68 per barrel as supply and demand dynamics continued to influence trade without major directional shifts. Across the broader commodity complex, the overall picture was one of uneven trends, with metals experiencing more pronounced fluctuation than energy.



ESG.


US sustainability policy developments were in focus after the Trump administration moved to repeal a significant climate-related regulation introduced under the previous administration. The measure had formed part of a broader framework aimed at accelerating the transition toward lower-carbon energy and strengthening environmental oversight. The repeal marks a shift in federal regulatory direction, with implications for corporate climate compliance requirements and investment planning within energy and industrial sectors. Market participants are assessing how changes in policy may influence capital allocation, transition strategies and longer-term sustainability commitments across affected industries.



Geopolitics.


Iran signalled conditional flexibility in its nuclear negotiations with the United States, indicating it may consider compromises on its nuclear programme if Washington discusses lifting sanctions, according to Reuters reporting on 15 February 2026. Iranian Deputy Foreign Minister Majid Takht-Ravanchi stated that “the ball is in America’s court,” underscoring Tehran’s emphasis on sanctions relief as a key precondition for further progress in talks. The second round of indirect discussions between Iranian and US envoys is set to take place in Geneva under Omani mediation, with Iran’s Foreign Minister Abbas Araghchi meeting the head of the International Atomic Energy Agency ahead of negotiations and reaffirming Iran’s desire for a “fair deal” while rejecting capitulation. Markets continue to monitor these developments against a backdrop of enduring regional tensions and a strong US military presence in the Middle East.



Week Ahead.


United States

In the United States, markets will watch the release of the Federal Open Market Committee (FOMC) minutes on Wednesday 18 February, which should provide further detail on policymakers’ deliberations at the January meeting and implications for monetary policy. Housing starts and building permits data — also due on 18 February — will offer insights into residential construction activity. Weekly initial jobless claims on Thursday 19 February will be monitored for signs of labour market momentum, and the Personal Consumption Expenditures (PCE) Price Index on Friday 20 February will provide updated inflation readings using the Fed’s preferred measure.


United Kingdom

In the UK, headline focus will be on January CPI data due Wednesday 18 February at 07:00, a key gauge for inflation trends as the Bank of England assesses the near-term policy outlook. Other ONS releases scheduled this week include productivity and private rents data, but the core CPI release is likely to have the most direct market impact.


Eurozone

Across the Eurozone, while there is no confirmed flash HICP release this week in the publicly available calendars, Eurostat’s practice is to publish flash inflation estimates at the end of the reference month, which markets continue to factor into expectations. Investors will also parse any industrial production and sentiment indicators as they become available, helping to inform views on demand conditions and the near-term inflation outlook across the bloc.


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