European Software Stocks Rebound After AI-Driven Selloff

The Stoxx 600 saw a 1.5% uptick in software valuations as traders hunted for a bottom following weeks of volatility. London-listed RELX spearheaded the rally, climbing 7% to trade at 21.86 pounds. Despite the gains, the sector remains significantly bruised; RELX continues to trade more than 15% below its February 2 peak, a decline triggered by the launch of an Anthropic AI tool designed to automate legal workflows.

Reassessing the AI Threat

Analysts are beginning to question whether the market’s initial panic was premature. Bank of America researchers noted that current pricing reflects a "near-certain probability" of AI disruption, a sentiment they described as overstated. Deutsche Bank analyst Steve Liechti pointed to the unique proprietary data sets held by RELX as a defensive moat that makes the company resilient against emerging challengers.

The sentiment shift extended to other data and service providers across the continent. Experian shares rose 5.6% after Morgan Stanley labeled the recent selloff as excessive. Meanwhile, French consultancy Capgemini gained 4.8% after reporting a spike in AI-driven demand during the last quarter. While the recovery provides temporary relief, Capgemini remains down approximately 22% from its early February levels, highlighting the volatility still facing the sector.