Britain's FTSE 100 up 0.7%; Germany's DAX up 0.09%

Britain's FTSE 100 up 0.7%; Germany's DAX up 0.09%

Britain’s FTSE 100 Rises 0.7% Amid Resilient UK Economy; Germany’s DAX Gains 0.09% as Recession Ends
February 27, 2026

The UK’s FTSE 100 climbed 0.7% midday, reflecting ongoing strength in the benchmark index, which has approached record levels amid improved economic fundamentals. Meanwhile, Germany’s DAX edged up 0.09%, signaling cautious optimism as the country’s two-year recession officially ended in 2025, according to revised GDP data.

Recent economic updates highlight divergent trajectories for the two economies. The UK’s GDP growth held up better than anticipated in late 2025, with services—the primary driver of economic activity—posting 0.3% monthly growth in November after a brief contraction in October. While manufacturing faced disruptions, including a one-off rebound in automobile production following a cyberattack, broader business activity defied expectations of Budget-related slowdowns. These developments may have supported the FTSE 100’s recent outperformance, which has outpaced global markets since September 2025.

Germany’s economic recovery, though more modest, also contributed to market sentiment. Full-year 2025 GDP expanded by 0.3%, with household spending and services growth offsetting declines in manufacturing and exports. Notably, the Federal Statistical Office confirmed that Germany’s recession, previously identified only through quarterly volatility, officially ended in 2025. This aligns with a gradual rebound in German stocks, which entered a bull market despite the prolonged downturn.

Both markets underscore a broader theme: stocks often price in economic turning points before official confirmations. For instance, German equities began recovering well before the recession’s end was formally declared, while UK stocks benefited from better-than-expected GDP resilience. These trends reinforce the importance of distinguishing between short-term volatility and long-term fundamentals, as markets efficiently discount widely anticipated developments.

Investors remain focused on whether sustained growth can offset lingering challenges, including fiscal constraints in Germany and policy uncertainty in the UK. For now, the FTSE 100’s proximity to a 11,000-point milestone and the DAX’s tentative gains suggest cautious optimism about Europe’s economic outlook.

UK and German GDP Teach a Timeless Lesson | Fisher Investments Insights (January 21, 2026): UK and German GDP Teach a Timeless Lesson | Fisher Investments Insights (January 21, 2026).