European luxury stocks tumble after weak Chinese data
today Jan 14, 2019
Shares in top European luxury goods companies fell on Monday after weak economic data from China, which is a major source of revenue for many firms in the sector.
Luxury goods and technology stocks leading the drop as investors fretted about slowing global growth and weaker-than-expected earnings.
The pan-European STOXX 600 was down 0.6 percent at 0833 GMT, reversing some of last week's gains which saw the index hit a one-month high. The market notched up four straight days of gains, its longest winning streak since November.
Luxury goods retailers, which rely on appetite for handbags and jewellery from China's burgeoning middle class, bore the brunt of the selling.
LVMH , Hermes and Gucci owner Kering were among the biggest fallers in Paris, each down between 1.2 and 2 percent, while Moncler in Milan dropped 1.9 percent. On average, one third of the luxury sector is exposed to Chinese demand.
Danish jeweller Pandora slumped 7 percent to the bottom of the STOXX 600. Burberry bucked the trend, garnering strength from a BAML upgrade to neutral from underperform.
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