Published by Global Banking & Finance Review®
Posted on February 18, 2026
3 min readLast updated: February 18, 2026
Add as preferred source on GoogleGeneva talks and inflation trends are in focus amid the Lunar New Year market lull, impacting global stocks and central bank policies.
A look at the day ahead in European and global markets from Rocky Swift
Geopolitical tensions and signs of cooling in the red-hot tech sector remain on investors' minds, taming price action on stocks, currencies, and commodities.
Asian shares crept higher, following slight gains on Wall Street, as concerns lingered about valuations linked to artificial intelligence and AI's potential impact on the broader economy. Many markets in the region remained closed for Lunar New Year holidays.
Japan was a standout, with the Nikkei jumping more than 1% on expectations the nation's tech firms will benefit from $36 billion in U.S. projects announced by President Donald Trump's administration that are to be funded by Tokyo.
Meanwhile, Geneva is playing host to negotiations aimed at cooling hotspots in the Middle East and Europe. Iranian Foreign Minister Abbas Araqchi said Iran and the U.S. reached an understanding on "guiding principles" in resolving their nuclear dispute. Representatives from Ukraine and Russia concluded the first of two days of U.S.-mediated peace talks as well.
Inflation remains the watchword for central bank policy. The kiwi dollar slumped nearly 0.9% after the Reserve Bank of New Zealand held rates steady and said expectations of cooling inflation would allow it to remain accommodative.
Chicago Fed President Austan Goolsbee said on Tuesday that there could be "several more" cuts this year, depending on inflation. Investors will get further insight into the Federal Reserve's thinking with the release of the minutes from its January meeting later on Wednesday.
British inflation data will be closely watched after a report on Tuesday showed unemployment rose to a five-year high, boosting the case for rate cuts by the Bank of England and triggering a slide in the pound.
The UK consumer price index is expected to show growth slowed to 3% year-on-year in January from 3.4% in December. France is also due to report CPI figures.
Stock futures pointed to slight gains at the open in Europe. The Euro Stoxx 50 futures index was up 0.07% at 6,039, German DAX futures added 0.06% at 25,074, and FTSE futures edged up 0.14% at 10,529.
U.S. stock futures, the S&P 500 e-minis, rose 0.06% at 6,864.8.
Key developments that could influence markets on Wednesday:
- Earnings: Glencore, Orange, Covivio
- Inflation figures for UK, France
- U.S. housing starts, durable goods figures for December; industrial production for January
- Fed minutes for January
(Editing by Kate Mayberry)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It oversees monetary policy and aims to maintain financial stability.
Economic indicators are statistics that provide information about the economic performance of a country. They include data on GDP, unemployment rates, inflation, and consumer spending.
Stock futures are contracts to buy or sell a specific quantity of a stock at a predetermined price on a future date. They are used to hedge against market fluctuations.
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