BUZZ-M&S: Top of the STOXX on earnings beat, margins outlook

** Marks & Spencer best performing & most activeamong top UK and European stocks after forecastbeating rise in underlying H1 profit & a brighter outlook fornon-food profit margins.

** Stock jumps 7 pct, poised for best day in more than 5years.

** Some short-covering at work, traders say. Demand toborrow Marks & Spencer shares spiked this month in the run-up toearnings announcement, per Markit.

** Analyst sentiment going into results also skewed towardsthe bearish side; 9 of 26 analysts had cut EPS estimates for M&Sover last 30 days by an average of 2.9 pct, StarMine shows.

** Heavily outperforms peers: Next up 0.5 pct,Debenhams 1.6 pct weaker, Kingfisher off 0.7pct. (RM: tricia.wright1.thomsonreuters.com@reuters.net)