Weekly Market Review - 23-02-2026

Feb 23
5 min read

Global markets rebounded strongly over the past week, with equities posting notable gains following a more cautious tone earlier in the month. The improvement in risk sentiment comes against a complex backdrop of easing UK inflation, renewed US trade policy developments, and widespread weather-related disruption affecting supply chains across multiple regions. As investors assess shifting macroeconomic signals alongside geopolitical and environmental pressures, attention now turns to a data-heavy week that may provide further clarity on growth, inflation and interest rate expectations.

Market Recap.

It was a notably stronger week for equity markets, marking a sharp turnaround from the declines seen previously.

UK equities delivered a standout performance, with the FTSE 100 ETF rising 2.41% — a significant move and one of the strongest weekly gains in recent months. The advance reflects renewed buying interest in large-cap names and improved overall market sentiment.

US markets also posted solid gains. The Dow Jones Industrial Average ETF rose 0.68%, while the S&P 500 ETF advanced 1.76%. Technology stocks rebounded in particular, with the Nasdaq 100 ETF climbing 2.36%, recovering much of last week’s weakness. The strength across major indices highlights a clear shift in tone compared with the more cautious backdrop seen previously.

News.

2026 has seen an exceptionally wet start in the UK, with near-daily rainfall recorded since the beginning of January. Persistent unsettled conditions have increased ground saturation and raised the risk of localised flooding in some areas.

In the near term, sustained heavy rain can reduce high street footfall, disrupt rail and road networks, and delay construction activity. Agriculture may also be affected where waterlogging influences planting schedules or crop quality. While such impacts are typically temporary, repeated weather disruption can weigh on sectors sensitive to logistics, retail activity and infrastructure resilience.

This comes alongside broader weather-related disruption internationally. Severe winter storms in parts of the United States have led to travel warnings and transport interruptions, while prolonged rainfall in Spain and Morocco has damaged crops and disrupted produce supply chains feeding into the UK. Together, these developments illustrate how weather volatility, both domestic and overseas, can influence short-term economic activity, supply availability and, in some cases, price dynamics.

Inflation.

UK inflation eased in January, with the annual Consumer Price Index falling to 3.0%, down from 3.40% in December, according to the Office for National Statistics. While prices continue to rise, the pace of increase has slowed.

The decline was driven in part by lower prices for meat, motor fuels and airfares, although this was partially offset by higher costs for hotel stays and takeaway food. Despite the monthly improvement, price levels remain significantly higher than five years ago across many staple goods.

The Bank of England has indicated that inflation is expected to continue easing in the coming months, potentially nearing its 2.00% target by April. Markets are assessing whether the latest data increases the likelihood of an interest rate cut in the near term, although cost pressures remain evident for many households and businesses.

Central Banks.

The European Central Bank has increased its scrutiny of euro-area banks’ exposure to the artificial intelligence sector, reflecting growing regulatory attention on concentrated industry risks. Supervisors are assessing whether lenders have appropriately evaluated potential financial stability implications linked to rapid expansion in AI-related lending and investment activity.

The move forms part of the ECB’s broader oversight of emerging risks within the banking system, highlighting a continued focus on ensuring that risk management frameworks keep pace with technological and sectoral developments.

Commodities.

Commodity markets saw notable recent strength in precious metals, while energy prices held firm without dramatic moves.

Precious metals remain elevated amid risk-off sentiment and safe-haven flows. Gold is trading above $5,000 per ounce, reflecting continued haven demand amid geopolitical and macroeconomic uncertainty. Silver is also strong, with spot prices recently seen in the mid-$80s per ounce. These levels point to persistent interest in metals despite volatile global sentiment.

In the energy complex, crude oil has been relatively stable. WTI crude is trading around $65–66 per barrel, while Brent crude sits near $70–72 per barrel — levels that suggest firmness in oil markets but without major directional swings for the week.

Overall, metals have shown more pronounced moves than energy, echoing broader market themes of risk repricing and haven demand, while oil continues to balance supply/demand signals and geopolitical developments.

ESG.

The European Central Bank has warned that proposed simplifications to the EU’s sustainability reporting standards could significantly reduce transparency for investors. In its assessment, the ECB cautioned that scaling back certain disclosure requirements may limit the availability of consistent, decision-useful information needed to properly assess climate and sustainability-related risks.

The comments come amid broader discussions within the EU about easing regulatory burdens on companies, particularly around ESG reporting frameworks. While simplification efforts are aimed at improving competitiveness and reducing compliance costs, the ECB emphasised the importance of maintaining robust and comparable sustainability disclosures to support financial stability and informed capital allocation.

Geopolitics.

Trade policy has moved back to the forefront after President Donald Trump announced an increase in global tariffs to 15%, following a US Supreme Court ruling that struck down elements of his earlier import tax measures. The Court ruled that the previous tariffs exceeded executive authority, stating that congressional approval is required to impose taxes on imports under the national emergency framework previously used.

In response, the administration invoked Section 122 of the 1974 Trade Act, which permits tariffs of up to 15% for a limited 150-day period. The decision has drawn reactions from lawmakers and international partners, with some warning of increased uncertainty for global trade and investment flows.

Week Ahead.

United States

In the United States, the week begins on Tuesday 24 February with the release of Consumer Confidence and the Richmond Fed Manufacturing Index, providing an early indication of household and regional business sentiment. On Wednesday 25 February, attention turns to New Home Sales and Durable Goods Orders, offering updates on housing activity and business investment. Thursday 26 February brings weekly Initial Jobless Claims alongside the second estimate of fourth-quarter GDP. The week concludes on Friday 27 February with the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, together with the final University of Michigan Consumer Sentiment reading.

United Kingdom

In the UK, attention begins on Monday 23 February with the CBI Industrial Trends Orders survey, providing an early read on manufacturing conditions. Later in the week, retail sales data are due on Thursday 26 February from the Office for National Statistics, offering insight into consumer spending momentum. On Friday 27 February, the Nationwide House Price Index will provide an update on housing market conditions.

Eurozone

Across the Eurozone, economic sentiment will be in focus on Thursday 26 February with the release of the European Commission’s Economic Sentiment Indicator (ESI), a broad gauge of business and consumer confidence across the bloc. On Friday 27 February, attention turns to the unemployment rate and the flash Harmonised Index of Consumer Prices (HICP) estimate for February, key indicators for the European Central Bank’s policy outlook.

Sources.

Market recap

FE fundinfo

News

https://news.sky.com/story/money-live-tips-personal-finance-consumer-sky-news-latest-13040934#11126479

https://news.sky.com/story/new-yorkers-told-to-stay-at-home-as-blizzard-threatens-to-become-bomb-cyclone-13511039

Inflation

https://www.bbc.co.uk/news/live/cg4gzr56wd2t

https://www.theguardian.com/business/live/2026/feb/18/uk-inflation-fall-cost-of-living-interest-rates-house-prices-rents-news-updates

Commodities

https://www.lbma.org.uk/prices-and-data

https://www.cmegroup.com/markets/metals/precious