European stock markets end where they started
European stock markets closed the day relatively unchanged, with the Stoxx Europe 600 slipping only 0.04%. In contrast, the FTSE 100 experienced a slight rise of 0.06%, while France’s CAC 40 fell by 0.4%. Germany’s DAX also dropped by 0.3%.
On Thursday, companies like EasyJet, British Land, and BT Group, all listed in London, are set to announce their quarterly revenue.
European stocks are hotter than expected and hardly change UK inflation numbers
European stocks remained mostly stable around noon in London. Following revenue releases from Marks & Spencer, JD Sports, and Curry, major accusations led several sectors to remain in the red, even though UK inflation figures were more robust than anticipated.
The regional STOXX 600 dipped 0.3%. Both the FTSE 100 and the CAC 40 fell by 0.3%, and the DAX recorded a 0.2% decrease.
Energy giant SSE cuts $4 billion in 5-year net zero plan investment
SSE, a leading energy firm based in Scotland, announced it is slashing its five-year clean energy investment plan by £3 billion ($4 billion), citing delays and shifts in macroeconomic policies. The company’s total capital investment plan now stands at £17.5 billion, but it may fall short of its ambitious goal of generating 50 terawatt-hours of renewable energy by 2030. SSE is adjusting its spending strategy in response to changes in the market and regulatory landscape.
In recent adjustments, its profits are projected to decline from £2.2 billion for 2024 to £2.14 billion for 2025, and net debt has risen from £9.4 billion to £10.2 billion in just a year.
According to Davies, SSE isn’t directly affected by US tariffs; some projects may experience delays, but overall costs remain stable.
Economists say the UK does “pretty good work” on foreign policy and trade transactions.
Kallum Pickering, the chief economist at Peel Hunt, shared insights on recent trade agreements the UK established with countries like the US, India, and the European Union.
JD Sports stocks fell 10% on profit hits, tariff concerns
JD Sports experienced a nearly 10% drop in stock value on Wednesday, following a reported decline in full-year profits and concerns about potential impacts from US tariffs. The company’s pre-tax profit, excluding adjustments, fell 3% to £923 million ($1.24 billion). In January, JD Sports revised its profit forecast downward.
By 8:13 am in London, stocks plummeted by 9.6%, placing them at the bottom of the Stoxx 600. The company also indicated that US tariffs could dampen consumer demand and affect partnerships with brands like Nike and Adidas.
Europe “just improve,” says Cisco CEO.
Cisco CEO Chuck Robbins expressed optimism about Europe’s market potential, especially following the announcement of a new global AI hub in Paris. The hub aims to train 230,000 individuals in AI and digital skills over the next three years. Robbins has been in dialogue with European officials since attending the World Economic Forum in Davos.
He noted that while Europe has been a consistent market for Cisco, there’s a need for the region to keep pace with rapid advancements in AI technology.
Robbins also addressed the uncertainty that trade tariffs create and emphasized the need for clear solutions. Cisco aims to work closely with the White House to navigate these challenges.
European stocks are open low
As the London market opened, the Stoxx 600 began on a negative note, with major sectors trading down by about 0.2%. The FTSE 100 is down 0.1%, France’s CAC 40 fell 0.35%, while the DAX decreased by 0.17%. Notably, the utilities, telecoms, and technology sectors showed some resilience.
Retailers on M&S Cyber Attacks cost $400 million
Marks & Spencer reported that a recent cyber attack will cost them around £300 million ($403 million) in operating profits due to disruptions in online sales. They identified a “very sophisticated” cyberattack in July that significantly impacted their operations and stock management costs.
The company managed to achieve a 22% increase in adjusted pre-tax profits, reaching £875.5 million, its highest in 15 years, despite the negative influence from the cyber events.
Sterling jumps after the UK inflation print
The British pound rose approximately 0.4% against the US dollar shortly after the release of the UK’s annual inflation data.
UK inflation will jump to 3.5% in April
Recent data from the National Statistics Office revealed that the UK’s annual inflation rate hit 3.5% in April, surpassing analysts’ predictions. Economists had anticipated a figure closer to 3.3%, following months of downward trends in inflation.
Core inflation, which excludes volatile items like food and energy, rose to 3.8%, up from 3.4% in March.
European market heads to lower open from flats
Good morning from London! European stocks are anticipated to open around the flatline, with the FTSE marking slight increases. The DAX and CAC 40 are also expected to show minimal movement.
Keep an eye on today
Investors should look out for revenue reports from major companies such as Marks & Spencer, SSE, Curry, and JD Sports. UK inflation data for April will also be released early.
Overnight action in the Asia-Pacific and US markets
The Asia-Pacific markets traded mostly flat overnight, with Japan’s Nikkei 225 down slightly amid reports of slowed exports impacted by US tariffs. Meanwhile, Korea’s Kospi saw a slight rise, and Australia’s S&P/ASX 200 also gained some ground.
In the US, S&P 500 futures experienced some volatility after a loss session on Wall Street.
