MARKET WRAPS

Stocks:

European shares climbed on Thursday as financials and software stocks recoup 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 are reducing exposure to software and perceived 'AI losers' while reallocating into old economy segments," Danske Bank said.

Investors were also weighing a stronger-than-expected U.S. jobs report published Wednesday.

For the Federal Reserve, January's solid U.S. employment data "should kill off any lingering suspicion of a rate cut in March ," Monex said. However, it maintains its expectation for now that the Fed will resume rate cuts in June.

Markets price in a 92% probability of unchanged Fed rates in March and 8% for a 25-basis-point rate reduction, according to LSEG.

Clearbridge Investments 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.

Focus is now on the consumer-inflation reading due tomorrow.

Economic insight

The U.K. economy recorded another year of modest economic growth in 2025 as consumers stayed cautious, unemployment rose and borrowing costs remained high.

U.K.'s weak growth raises the chance the Bank of England will cut interest rates as soon as March, RSM said.

U.S. Markets:

Stock futures rose ahead of more earnings, with results expected from Airbnb, Applied Materials and Coinbase, among others.

Forex:

The euro was flat.

Sterling was little moved, remaining steady against the dollar and the euro, after data showed the U.K. economy grew slightly less than expected in the fourth quarter of 2025.

The dollar remained higher after Wednesday's better-than-expected U.S. nonfarm payrolls report. However, Trump prevented the dollar from rising more meaningfully after he called for further rate cuts, citing the strong job data, Commerzbank said.

Bonds:

Treasury yields edged marginally lower in Asian trade, reversing from the rises prompted by investors selling Treasurys after January employment data came in stronger than expected.

The 3% hurdle for 10-year Bund yields will be within grasp soon, RBC Capital Markets said. Bond markets have remained very rangebound over recent months and this is likely to continue for the time being, it added.

Energy:

Oil prices rose in early trading as tensions between the U.S. and Iran keep markets on edge.

"While crude has posted gains in nearly every week this year due to recurring geopolitical risks , data showed US inventories surged to the highest level since June, reinforcing expectations of ample supply," MUFG said.

Global oil supply is expected to rebound in the coming months after plunging in January due to a severe winter storm in the U.S. and export constraints that curtailed flows from Kazakhstan, Russia and Venezuela, according to the International Energy Agency.

Metals:

Gold prices eased in early trading, with New York futures holding below $5,100.

"The renewed focus on incoming economic data suggests a degree of normalisation following the recent volatility spike, while the upcoming Lunar New Year holiday in China may further dampen risk appetite and liquidity," Saxo Bank said.

Iron

Iron ore edged higher in Asian trading. Futures were little changed, as the industry is slowing ahead of the Lunar New Year holidays, ANZ said.

EMEA HEADLINES

U.K. Posts Modest Growth for 2025

The U.K. economy recorded another year of tempered economic growth in 2025 as consumers stayed cautious, unemployment rose and borrowing costs remained high.

The country's center-left Labour government took office in July 2024, having pledged to lift the U.K. out of a long period of stagnation, but 2025 instead saw a rebound in inflation and the imposition of higher U.S. tariffs on imports from the country, which hampered growth. Economists don't expect to see a big acceleration this year, although inflation is set to cool.

Hermes' Sales Continue to Grow at Year-End

Hermes closed 2025 with an increase in sales for the year's final three months amid hopes of a sustained luxury rebound this year.

The French luxury company booked revenue of 4.09 billion euros ($4.86 billion) for the last three months of the year, 9.8% higher than in the same period a year earlier at constant exchange rates. The increase in sales during the quarter, which comprises the key Christmas shopping season, showed an upward trend compared with the previous three months, when Hermes booked a 9.6% rise.

AB InBev Upbeat for 2026 as Volumes Decline Slows

Budweiser maker Anheuser-Busch InBev said it is confident of continued earnings growth in the year ahead after beer sales volumes fell by less than expected at the end of 2025.

The world's largest brewer said the soccer World Cup this summer and other sporting events should help it boost sales, countering recent weakness in volumes amid a broad-based downturn in drinking among consumers in many markets, and especially among younger people.

EssilorLuxottica Shares Gain as Smartglasses Promise Rosy Future

Shares in EssilorLuxottica surged after the eyewear behemoth said booming demand for smartglasses will drive revenue growth over the years to come.

Shares gain 5.6% to 265.50 euros in early trade Thursday.

Nuveen to Buy U.K. Asset Manager Schroders in $13.5 Billion Deal

Nuveen, the asset-management arm of Teachers Insurance and Annuity Association of America, is set to buy Schroders in a deal valuing the U.K. group at $13.49 billion.

The boards of both companies agreed on the terms of a cash acquisition under which Schroders shareholders would get up to 612 pence, equivalent to about $8.34, for each of their shares, including dividends, they said Thursday. This represents a 34% premium to Schroders' closing price of 456 pence on Wednesday if the dividends are declared and paid in full.

GLOBAL NEWS

IEA Expects Oil Supply to Rebound After U.S. Winter Storm Slashed Output

The International Energy Agency expects global oil supply to rebound in the coming months after plunging in January due to a severe winter storm in the U.S. and export constraints that curtailed flows from Kazakhstan, Russia and Venezuela.

The Paris-based organization-which represents major oil-consuming nations-said supply fell 1.2 million barrels a day last month as frigid temperatures, heavy snow, and ice storms forced shutdowns of oil fields and infrastructure, shaving roughly 860,000 barrels a day in the U.S. and 220,000 barrels a day in Canada.

China EV Sales Drop for First Time Since February 2024

Sales of electric vehicles and hybrid cars in China fell for the first time in almost two years last month, underlining slowing demand after a period of rapid growth and aggressive expansion in the world's largest EV industry.

Retail sales of new-energy vehicles, a term encompassing EVs and hybrid cars, fell 20% to 596,000 units in the first month of 2026, the China Passenger Car Association said Thursday.

U.K. Posts Modest Growth for 2025

The U.K. economy recorded another year of tempered economic growth in 2025 as consumers stayed cautious, unemployment rose and borrowing costs remained high.

The country's center-left Labour government took office in July 2024, having pledged to lift the U.K. out of a long period of stagnation, but 2025 instead saw a rebound in inflation and the imposition of higher U.S. tariffs on imports from the country, which hampered growth. Economists don't expect to see a big acceleration this year, although inflation is set to cool.

Sanctions, Ship Seizures and Low Prices Squeeze Russia's Oil Industry

Dozens of tankers filled with Russian oil are floating at sea without buyers. Western powers are seizing the aging ships the country relies upon. Buyers of Russian oil are demanding the steepest discount to global oil prices since the early months of the war in Ukraine.

It all spells crunchtime from Moscow's most important economic engine.

GOP-Led House Rejects Trump's Tariffs on Canada

WASHINGTON-The GOP-led House passed a resolution Wednesday designed to roll back President Trump's tariffs on Canada, as a half-dozen Republicans joined Democrats in rebuking the administration's signature economic policy.

The House voted 219-211 to approve a Democratic resolution that would invalidate the emergency declaration that underpins Trump's tariffs on Canada. Six Republicans broke ranks with their party in voting for the measure, another setback for House Speaker Mike Johnson (R., La.), who couldn't keep his conference united in support of the president.

Pentagon Prepares Second Aircraft Carrier to Deploy to the Middle East

The Pentagon has told a second aircraft carrier strike group to prepare to deploy to the Middle East as the U.S. military readies for a potential attack on Iran, according to three U.S. officials.

President Trump said Tuesday that he was weighing sending a second carrier to the Middle East to prepare for military action if negotiations with Iran failed. The order to deploy could be issued in a matter of hours, one of the officials said.

Bondi Defends Epstein Files Release in Combative Hearing

WASHINGTON-Attorney General Pam Bondi defended the Justice Department's release of files from the Jeffrey Epstein investigation during a fiery congressional hearing in which she traded barbs with Democrats, praised President Trump and declined to apologize directly to a group of the convicted sex offender's victims seated behind her.

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February 12, 2026 05:01 ET (10:01 GMT)

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