LIVE MARKETS-Europe before the bell: software watched, big hit for Novo

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EUROPE BEFORE THE BELL: SOFTWARE WATCHED, BIG HIT FOR NOVO

European shares were set for a steady start on Wednesday after a rout in software and data analytics companies dragged the STOXX 600 .STOXX down from record levels, as concerns deepened that new AI tools could disrupt their businesses.

Shares in Europe's largest software group, SAP SAPG.DE, gained 1% in early Frankfurt trading, suggesting the sector could see a respite from mounting selling pressure, which analysts said was driven more by fear than fundamentals.

After hosting SAP CEO Christian Klein in London, Deutsche Bank said it was “incrementally positive” on the investment case, although AI risks still dominate the market narrative.

Traders were also awaiting the start of trading in Novo Nordisk NOVOb.CO in Copenhagen .OMXC20 after shock 2026 guidance sent its shares tumbling around 15% in New York, derailing a recovery from November lows.

Other European heavyweights across the banking, energy and pharmaceutical sectors also reported: UBS’s UBSG.S quarterly profit beat expectations; Equinor’s EQNR.OL fourth-quarter profit fell; and GSK GSK.L forecast slower sales growth.

Euro STOXX 50 .STOXX50E and FTSE .FTSE futures were up 0.1–0.3%. Wall Street futures were also marginally higher.

Macro investors, meanwhile, were awaiting euro zone preliminary inflation data later on Wednesday, one day ahead of the European Central Bank’s rate decision.

(Danilo Masoni)

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