The consumer confidence index in Italy rose to 97.4 in February 2026 from 96.8 in the previous month, slightly exceeding market expectations of 97.2. It marked the highest reading since October 2025, as all components of the index improved except for assessments (judgments and expectations) of the personal economic situation and the opportunity to save in the current climate, alongside slightly worsened unemployment expectations. The personal climate edged up to 96.8 from 96.6 in January, the consumer economic climate jumped to 99.1 from 97.4, the current climate rose to 100.7 from 100.1, and the future climate increased to 93.1 from 92.3.

Sterling fell to $1.35 as voters headed to the polls in a pivotal UK by-election that could carry implications for Prime Minister Keir Starmer. The vote in the Gorton and Denton constituency was triggered by the resignation of former Labour minister Andrew Gwynne. A loss for the ruling Labour Party would likely reignite speculation over Starmer’s leadership, following recent pressure linked to the Peter Mandelson scandal. Investors are wary that any political upheaval involving Starmer and Chancellor Rachel Reeves could pave the way for a looser fiscal stance, raising concerns about debt sustainability. Traders also weighed US President Donald Trump’s new 10% global tariffs and a third round of US-Iran nuclear talks in Geneva, amid rising Middle East tensions. On the monetary policy front, markets increasingly expect interest rate cuts from the Bank of England, amid softer employment data and easing inflationary pressures.

Sweden’s Economic Tendency Indicator declined to 100.1 in February 2026, the lowest level since late October, down from 102.9 in January. Manufacturing softened mainly due to subdued production plans that fell below historical averages, although relatively low finished-goods inventories provided some support. Confidence in both the trade and service sectors also weakened, with trade sentiment pressured by lower sales volumes over the past three months, partly offset by improved expectations for future sales. In the service sector, weaker recent activity and demand drove the decline. In contrast, construction confidence improved, supported by more optimistic hiring plans and a less negative assessment of order books. Consumer confidence also strengthened, reflecting a more positive view of household finances and the Swedish economy compared with a year earlier, although sentiment remained below normal levels.

Switzerland's non-farm payrolls rose 0.2% year-on-year to 5.544 million in Q4 2025, following a 0.1% gain in the previous quarter. Employment in the industrial sector fell at a slower pace of 0.1% to 1.129 million, compared with a 0.7% drop in Q3, supported by increases in manufacturing (-1% vs -1.4%), water supply and elimination of pollution (1.9% vs 1.8%), and construction (1.1% vs 0%), which offset the slowdown in mining and quarrying (4.4% vs 4.7%). Meanwhile, employment in the services sector remained unchanged at 0.2% to 4.415 million, amid rebounds in trade, maintenance and repair of motor vehicles (0.4% vs -0.1%), real estate and housing (1.7% vs -3.1%), provision of other economic services (2.3% vs -1.1%), and arts, entertainment and recreation (1.1% vs -0.1%). Declines were seen in transport and storage (-0.7% vs 0.7%), hospitality (-0.9% vs 1.3%), and provision of financial and insurance services (-1.9% vs -1.6%).

The Economic Confidence Index rose to 100.7 in February 2026 from 99.4 in each of the previous two months. This was the first time the index has surpassed the 100 mark since March 2025, indicating an optimistic outlook about the general economic situation. Retail trade confidence showed a more pronounced improvement, climbing to 115.9 from 112.6 in January. Sentiment in the real sector also strengthened, up to 104.1 from 103.0, while the services confidence index remained steady at 113.8. Consumer confidence improved as well, with the index up to 85.7 from 83.7. Conversely, the construction confidence index fell to 83.9 from 85.7.

The Japanese yen strengthened past 156 per dollar on Thursday, snapping a two-day slide as hawkish signals from the Bank of Japan supported domestic yields. Board member Hajime Takata, regarded as the most hawkish member, called for further rate hikes and for guidance reflecting that the price stability target is nearly met. Governor Kazuo Ueda also reportedly said the central bank will carefully review economic data at its March and April meetings before deciding on rate adjustments, leaving the door open for a near-term hike. These developments followed the Japanese government’s nomination of two reflationist academics to the central bank's policy board, reinforcing expectations that the BOJ will proceed cautiously with further tightening. Prime Minister Sanae Takaichi also reportedly voiced concerns over additional rate hikes during a meeting with Ueda last week.