Europe close: Stocks manage gains as investors pore over US data
11th Feb 2026 15:18
(Sharecast News) - European markets rallied after midday on Wednesday to hit a fresh intraday high as investors digested US labour market data, a sharp cooling in Chinese inflation and domestic earnings updates.
The pan-European Stoxx 600 closed up 0.17% at 622.03, as Germany's DAX fell 0.43% to 24,880.41 and France's CAC 40 slipped 0.15% to 8,315.29, while the UK's FTSE 100 outperformed with a 1.14% gain to 10,472.11.
Russ Mould, investment director at AJ Bell, said: "The FTSE 100 ticked higher on Wednesday, supported by gains in bank and resource stocks and chatter that London Stock Exchange Group has been targeted by activist investor Elliott."
Attention turns to US jobs report
Attention centred on the US jobs report and annual revisions.
Private sector employers added 130,000 jobs in January 2026, well above December's downwardly-revised 48,000 and ahead of consensus forecasts for 55,000, with gains in health care, social assistance and construction.
The federal government shed 34,000 roles and financial activities payrolls fell by 22,000.
On an annualised basis, total non-farm employment growth for 2025 was revised down to 181,000 from 584,000, implying average monthly gains of 15,000 rather than the previously reported 49,000.
The unemployment rate edged down to 4.3% from 4.4%, beating expectations, while average hourly earnings rose 0.4% month on month against forecasts for 0.3%, leaving annual wage growth steady at 3.7%.
In housing, US mortgage applications slipped 0.3% in the week to 6 February, extending a 16.7% drop over the previous two weeks despite lower mortgage rates.
Purchase applications fell 2.4% following a 14% plunge, while refinancing applications edged up 1.1%, as markets assessed how Fannie Mae and Freddie Mac would comply with Donald Trump's order to purchase $200bn in mortgage-backed securities.
In the UK, Barclays reported that consumer card spending rose just 0.8% year on year in January, below the 3.6% CPIH inflation rate.
Essential spending fell 1.1% for a sixth consecutive month, while discretionary spending increased 1.6%, driven by a 5.7% rise in online retail.
Spending on digital content and subscriptions jumped 9.3% and overall entertainment spending rose 8.3%, with 35% of consumers saying they watched more TV and films due to cold weather and dark evenings.
Consumer confidence on household finances held at 66%, the ability to live within means at 71% and views on the economy at 24%, though confidence in job security eased to 43% from 46%.
"Improving consumer confidence is absolutely key to the UK's economic outlook in 2026. With that in mind, the stabilisation in this month's survey is an encouraging step in the right direction," said Barclays' chief UK economist Jack Meaning.
"With inflation set to fall quickly in the coming months, interest rates on course to ease and some early signs of resilience in wider activity, the scene is set for confidence to pick up, supporting growth in spending as the year goes on."
Data from China showed consumer price inflation rose 0.2% year on year in January, down from 0.8% in December and below forecasts for 0.4%.
Food prices fell 0.7% compared with 1.1% growth previously, while non-food inflation slowed to 0.4% from 0.8%.
On a monthly basis, prices rose 0.2%, short of expectations for 0.3%, and core CPI eased to 0.8% from 1.2%.
Patrick Munnelly, market strategy partner at TickMill, said that "sluggish retail sales strengthened expectations that the Federal Reserve might trim interest rates later this year," while adding that "gold, often a beneficiary of rate cuts, rose 0.5%, fuelling mounting expectations of three rate reductions by the Fed this year - two of which are already priced in."
ING said the decline in food prices was expected due to Lunar New Year timing effects.
"Overall, CPI inflation continued to rise at a decent 0.2% month-on-month pace, suggesting that overall we are still on track to see a general recovery of inflation in 2026 for now," said chief economist Lynn Song, adding that the bank maintained its 0.9% full-year forecast.
Gerresheimer and Dassault Systemes plummet
In equities, shares in Gerresheimer plunged 31.14% after the German medical equipment maker said a broader investigation into its accounting practices would hit 2025 results and that it had started the sale of its US packaging business to strengthen its balance sheet.
Dassault Systèmes fell 20.01% after weak fourth-quarter figures and a subdued outlook, while Barratt Redrow dropped 1.84% as interim profits declined 13.6% amid soft housing demand.
"Barratt Redrow's first-half results have created some uncertainty about the outlook and helped shake the foundations of the share price," Mould said, adding that "margins are under pressure thanks to sales incentives and build cost inflation and reservation rates aren't anything to write home about either."
London Stock Exchange Group slipped 0.87%, reversing earlier gains after reports that activist investor Elliott had built a significant stake.
"A near-40% collapse in London Stock Exchange Group's share price in the past 12 months has put the company on the radar of activist investors," said Dan Coatsworth, head of markets at AJ Bell, adding that "activists take stakes in a business so they can flex their muscles and demand an audience from management."
On the upside, Ahold Delhaize surged 11.5% after better-than-expected fourth-quarter results.
Heineken rose 4.26% despite announcing up to 6,000 job cuts and lowering its 2026 outlook.
"Heineken has found life harder going, with beer sales not flowing as much as the company would like," Mould said, adding that "the brewer is guiding for 5,000 to 6,000 redundancies over the next two years, which is an unpleasant situation for its workforce."
Siemens Energy advanced 8.37% after first-quarter net profit nearly tripled, supported by AI-driven demand for gas turbines and grid equipment and narrower losses at its wind division.
Reporting by Josh White for Sharecast.com.