European stock markets opened lower on Monday, with the FTSE 100 under pressure after the latest UK inflation data indicated a moderation in price pressures. The decline in the Consumer Price Index suggests that the Bank of England is unlikely to raise interest rates at its June meeting, tempering market expectations for further tightening.
Marks & Spencer Beats Forecasts
Marks & Spencer (M&S) shares rose 1.5% after reporting stronger-than-expected fourth-quarter results, driven by robust growth in both clothing and food sales. The retailer exceeded adjusted profit before tax (PBT) forecasts of £671.4 million. However, the company provided vague guidance for 2027 profit growth, leading analysts to anticipate slight downgrades to their earnings estimates.
Experian Falls Despite Record Results
Credit reference firm Experian (EXPN) saw its shares decline 5.4% despite posting record annual results and announcing a $1 billion share buyback program. For the fiscal year ending March, revenue rose 13% to $8.43 billion, with earnings before interest and tax up 15% to $2.41 billion. The company also raised its full-year dividend by 11% to 69.25 cents per share. CEO Brian Cassin described the year as a record one but guided 6-8% organic sales growth for the next year, below the City consensus of 8%, citing uncertainties in the Middle East. Analysts noted that the share price drop reflects fears of AI disruption despite strong earnings growth forecasts.
Severn Trent and Other Movers
Severn Trent (SVT) surged 2.3% after raising its 2028 earnings per share forecast and increasing dividends, bucking the broader market trend.
Bank Indonesia Hikes Rates
In Asia, Bank Indonesia surprised markets by raising its benchmark interest rate by 50 basis points to support the rupiah, which had fallen to consecutive record lows this month. The larger-than-expected increase signals the central bank's determination to stabilize the currency amid ongoing market pressures.
Euronext Reports Strong Q1
Euronext (ENX) reported its eighth consecutive quarter of double-digit growth in Q1 2026, with record performance in non-volume related revenues. The exchange operator's diversified income streams beyond trading volumes underscore its expanding role in European financial markets.
Ocado Issues New Shares
Ocado Group (OCDO) allotted 62,729 new ordinary shares under its Restricted Share Plan, increasing total shares to 842 million on the London Stock Exchange. The move slightly dilutes existing shareholders but aligns with the company's use of equity-linked remuneration, common among growth-focused tech and ecommerce firms. Analysts maintain a Hold rating with a £225 price target amid mixed signals, including volatile profits but improving cash flow.
Shanghai Top Numerical Control Soars on IPO
Shares of Shanghai Top Numerical Control Technology surged 80% on their Hong Kong debut, closing at HK$47.50. The stock opened 40% above the HK$26.39 offer price, peaking at HK$48.40 amid strong investor demand. The company raised HK$1.72 billion (US$219.6 million) from 65.33 million shares, with the public tranche oversubscribed 3,764 times and institutional demand 29 times oversubscribed. The strong debut reflects heightened global enthusiasm for the aerospace sector, with major players like SpaceX eyeing a record IPO and Chinese aerospace firms preparing listings.
US Futures Rise Ahead of Nvidia Earnings
In the US, futures for the S&P 500 rose 0.2%, signaling a potential end to a three-day losing streak, while Nasdaq 100 futures gained 0.4% and Dow Jones Industrial Average futures rose 0.1%. Traders are focused on key earnings from Nvidia (NVDA) later this week, which could set the tone for the tech sector.
