Key Takeaways
- German manufacturing has returned to growth for the first time since mid-2022, with the February PMI breaching the 50.0 expansion threshold and lifting broader business confidence.
- Johnson Matthey (JMAT) shares plummeted 13.2% after the company slashed the sale price of its catalyst technologies unit to Honeywell by nearly £500 million to salvage the deal.
- PostNL (PNL) climbed 5.2% following a strong Q4 performance and a 2026 outlook projecting double-digit revenue growth and significant cost-saving measures.
- Switzerland's M3 money supply growth accelerated to 5.1% in January, up from 4.6% in December, indicating a notable increase in domestic liquidity.
German Industrial Optimism Returns
Business confidence in Germany is showing signs of a significant turnaround as managers express renewed optimism following a long-awaited recovery in the industrial sector. For the first time since mid-2022, domestic manufacturing has returned to expansionary territory, a development that is expected to be reflected in the upcoming Ifo Business Climate Index release.
The recent HCOB Flash Germany Manufacturing PMI reached 50.7 in February, up from 49.1 in January, signaling the end of a multi-year contraction. Analysts suggest that this recovery is being driven by a surge in domestic industrial orders and increased public spending on infrastructure and defense.
Johnson Matthey Crumbles on Slashed Deal Price
Shares of Johnson Matthey (JMAT) were the biggest laggards in European trading, falling 13.2% after the company revised the terms of its divestment strategy. The specialty chemicals firm agreed to cut the sale price of its catalyst technologies business to Honeywell to £1.33 billion, down from the £1.8 billion originally agreed upon in May.
The price reduction was reportedly necessary to prevent Honeywell from walking away from the transaction due to regulatory concerns and shifting business milestones. Consequently, the expected shareholder return from the deal has been reduced from £1.6 billion to £1 billion, severely dampening investor sentiment despite the company reaffirming its full-year operating profit guidance.
PostNL Leads Gainers on Robust Outlook
In the logistics sector, PostNL (PNL) saw its shares rise 5.2% after delivering a strong Q4 earnings report. The Dutch postal service provider announced that it expects 2026 to be a pivotal year, targeting revenue growth between 5% and 7% and cost savings of up to €40 million.
The company is currently executing its "Breakthrough 2028" strategy, which involves a structural split of its parcels business into E-commerce and Platforms segments. Investors reacted positively to the company's ability to offset organic cost increases through targeted yield measures and price hikes.
Swiss Monetary Growth and Other Market Movers
Data from the Swiss National Bank showed that Switzerland’s M3 money supply grew by 5.1% year-on-year in January, accelerating from the 4.6% recorded in the previous month. This increase in broad money suggests rising liquidity within the Swiss economy, though it may also prompt closer scrutiny from policymakers regarding inflationary pressures.
Other notable movers in the European session included JD Sports (JD.), which gained 2.4%, while Belimo (BEAN) shares fell 6.1%. Despite reporting record sales for 2025, Belimo's outlook remained cautious, noting that a material recovery in the critical German construction market is not yet anticipated for 2026.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.