European stocks edge higher as banks lead recovery from AI fears

The STOXX 600 index edged higher on February 16, 2026, as financial shares (banks and insurance stocks) rallied ahead of a busy week of corporate earnings. Investors are focusing their attention on upcoming results that are expected to provide updated signals on the health of corporate Europe and influence regional market direction. This movement follows a period of recent volatility, a record high for the STOXX index, and a three-week gains streak.