European Midday Briefing: Software, Financial Stocks Rebound After Selloff

Investors weigh stronger-than-expected U.S. jobs report, focus on consumer inflation data due tomorrow

Published on Feb. 12, 2026

Got story updates? Submit your updates here. ›

European shares climbed on Thursday as financials and software stocks recouped some recent losses. Investors were also weighing a stronger-than-expected U.S. jobs report published Wednesday, which 'should kill off any lingering suspicion of a rate cut in March' for the Federal Reserve, according to Monex. Focus is now on the consumer-inflation reading due tomorrow.

Why it matters

The rebound in software and financial stocks suggests investors are reducing exposure to perceived 'AI losers' and reallocating into more traditional sectors. The stronger U.S. jobs data also indicates a solid labor backdrop that can fuel further upside in consumption, though it raises the chances the Fed will hold rates steady in March.

The details

European shares climbed as financials and software stocks recouped some recent losses. AI-related jitters have swept through varied corners of the market in recent days, with increasing fears that the software industry would experience major disruption. Investors were also weighing the stronger-than-expected U.S. nonfarm payrolls report published Wednesday, which 'should kill off any lingering suspicion of a rate cut in March' for the Federal Reserve, according to Monex. However, Monex maintains its expectation that the Fed will resume rate cuts in June.

  • The U.S. nonfarm payrolls report was published on Wednesday.
  • The consumer-inflation reading is due tomorrow.

The players

Danske Bank

A bank that said 'Investors are reducing exposure to software and perceived 'AI losers' while reallocating into old economy segments.'

Monex

A firm that said the strong January U.S. employment data 'should kill off any lingering suspicion of a rate cut in March', though it maintains its expectation that the Fed will resume rate cuts in June.

Clearbridge Investments

An investment firm that said last month's labor data is positive for risk assets given it shows a solid labor backdrop that can fuel further upside in consumption.

LSEG

A financial markets infrastructure and data provider that said markets price in a 92% probability of unchanged Fed rates in March and 8% for a 25-basis-point rate reduction.

RSM

A consulting firm that said the U.K.'s weak growth raises the chance the Bank of England will cut interest rates as soon as March.

Got photos? Submit your photos here. ›

What they’re saying

“Investors are reducing exposure to software and perceived 'AI losers' while reallocating into old economy segments.”

— Danske Bank (Dow Jones)

“January's solid U.S. employment data 'should kill off any lingering suspicion of a rate cut in March'.”

— Monex (Dow Jones)

The takeaway

The rebound in software and financial stocks suggests investors are adjusting their portfolios in response to AI-related concerns, while the stronger U.S. jobs data indicates a resilient labor market that could support further economic growth, though it also raises the chances the Fed will hold rates steady in March.