(Bloomberg) — European stocks edged higher as companies including Siemens Energy AG and Heineken NV reported upbeat earnings. Software firm Dassault Systemes SE tumbled 20% as its outlook disappointed.
The Stoxx 600 Index was up 0.1% by the close. In individual stocks, Siemens Energy jumped 8.4% to a record as surging electricity demand continues to bolster sales of its gas turbines and power-grid products. Heineken advanced 4.4% after the Dutch brewer said it would cut 5,000 to 6,000 jobs as it contends with a slump in demand for alcohol.
Meanwhile, software stocks including SAP SE were lower amid growing concerns that artificial intelligence would disrupt the industry. AI displacement worries have also weighed on wealth manager shares, with St James’s Place Plc dropping 13% after a sharp decline in US peers overnight.
Shares received a boost after stronger-than-expected US payrolls data. The unemployment rate also unexpectedly fell, suggesting the American labor market continued to stabilize at the start of 2026.
“As long as the market doesn’t reprice Fed rate cuts, this is positive for stocks,” said Francois Rimeu, senior strategist at Credit Mutuel Asset Management. “It’s really one of the best prints we’ve got for a while.”
Europe’s benchmark index is inching back up to record highs as investors weigh what has been a mixed earnings season so far. More analysts have downgraded rather than upgraded profit estimates since the end of 2025, a Citigroup Inc. index shows.
Sectors that are deemed to be at risk from AI, such as insurance and software, have also been roiled in recent days. Barclays Plc strategists downgraded European insurers on Wednesday, saying valuations could decline another 5% to 25%.
“The market at the moment is very scared of AI’s disruption,” said David Lambert, head of European equities at RBC Global Asset Management UK. “It’s kind of a ‘shoot first, ask questions later’ mantra, which is probably wrong. Ultimately, these AI tools will be used in conjunction with a lot of these firms that are getting caught up in this sort of disruptive narrative.”
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–With assistance from Sagarika Jaisinghani and Rose Henderson.
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