Key Takeaways
- Automaker Stellantis (STLA) saw its shares halted from trading in Milan after plummeting by as much as 18.65%, hitting its lowest level since June 2020, following the announcement of approximately €22 billion ($26.5 billion) in charges related to a reassessment of its electric vehicle (EV) strategy.
- European Central Bank (ECB) Governing Council member Olli Rehn warned of a real risk of lower-than-expected inflation, while fellow member Muller indicated the December outlook remains a good basis for decision-making, suggesting a nuanced view on the Eurozone's economic trajectory.
- The New START nuclear arms control treaty between the United States and Russia officially expired on February 5, 2026, prompting calls from former President Donald Trump for a new, modernized agreement that would include China.
- Indirect US-Iran nuclear talks resumed in Muscat, Oman, with reports indicating the attendance of Jared Kushner, son-in-law and advisor to former President Donald Trump.
European markets reacted to a mix of corporate news and central bank commentary, while significant geopolitical developments unfolded.
Stellantis Shares Plunge on EV Strategy Overhaul
Stellantis (STLA), the multinational automotive corporation, experienced a dramatic decline in its Milan-listed shares, which were automatically halted from trading after falling 18.65%, reaching their lowest point since June 2020. The sharp drop followed the company's announcement of approximately €22 billion ($26.5 billion) in charges recorded in the second half of 2025. These substantial writedowns reflect a significant reassessment of its electric vehicle (EV) development plans, with the company admitting it overestimated the pace of the transition to electric cars. Stellantis, which owns brands like Vauxhall, Opel, Citroën, Chrysler, and Fiat, is now aligning its EV push with "the real-world preferences of its customers." The charges include €14.7 billion for "re-aligning product plans with customer preferences and new emission regulations in the US."
ECB Officials Offer Mixed Signals on Inflation and Economy
European Central Bank (ECB) Governing Council member Olli Rehn stated there is a real risk of lower-than-expected inflation across the Eurozone. He noted that while inflation is currently near the ECB's symmetric 2% target, there are emerging risks of a downward trend in the coming years, influenced by a strengthening euro and stabilizing wages and services inflation. Conversely, fellow ECB Governing Council member Muller maintained that the December outlook still provides a good basis for decision-making, indicating a sense of balance for the economy in the short term. The ECB's December projections anticipated headline inflation to average 2.1% in 2025, 1.9% in 2026, and 1.8% in 2027, before returning to 2.0% in 2028.
New START Treaty Expires, Raising Arms Control Concerns
The New START nuclear arms control treaty, the last remaining bilateral agreement limiting the strategic nuclear arsenals of the United States and Russia, officially expired on February 5, 2026. Former US President Donald Trump, through his Under Secretary for Arms Control, reiterated his stance that he wants a better agreement to succeed New START, criticizing the original treaty as flawed and highlighting its exclusion of China. This expiration marks the first time in over half a century that the world is without a legally binding agreement to control nuclear weapons, raising international concerns over nuclear proliferation and strategic stability. China, however, has rejected participation in such talks, citing its significantly smaller arsenal compared to the US and Russia.
US-Iran Nuclear Talks Resume in Oman
Indirect nuclear negotiations between the United States and Iran have resumed in Muscat, Oman. Iranian state television reported that Jared Kushner, son-in-law and advisor to former President Donald Trump, is also attending the talks as part of the American delegation. The discussions are focused on Iran's nuclear dossier and aim to address nuclear issues and potentially reduce tensions between Tehran and Washington. Oman has historically played a mediating role in US-Iran diplomacy, with the current talks shifting from Istanbul to Muscat at Iran's request to narrow the agenda strictly to the nuclear file.
Bank of Japan Yen-Index Update
The Bank of Japan (BoJ) Yen-Index was reported at 74.05 on February 6, slightly up from the previous 74.02. This update comes as the BoJ recently held its key short-term interest rate unchanged at 0.75% at its first policy meeting of 2026. The central bank also raised its fiscal year 2025 GDP growth forecast, indicating a resilient economic outlook despite ongoing yen weakness.
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.