2023-05-23 14:51:05
The Louis Vuitton logo on a handbag in a store in Bordeaux
PARIS/MILAN (Archyde.com) – The luxury sector in Europe suffered on Tuesday on the stock market as the close approached amid profit-taking, rising bond yields and signs of falling demand in the United States.
Around 2:30 p.m. GMT, the Stoxx Europe Luxury 10 index fell 4.18%, heading for its biggest decline in session since mid-December. In comparison, the pan-European Stoxx 600 index dropped 0.48% at the same time.
In Paris, LVMH (-4.58%), Hermès (-5.98%) and Kering (-2.71%) represent three of the four largest drops in the CAC 40 alongside Vivendi (-3.81%) .
Elsewhere in Europe, Burberry, Tod’s, Moncler and Richemont fell from 1.4% to 4.76%.
While LVMH has gained more than 20% on the stock market since the start of the year, Deutsche Bank said on Tuesday that it was time for investors to be “more selective” on luxury stocks. The bank notes signs of slowing growth in the United States, even if the market in Europe continues to show some resistance and remains dynamic in China.
The ten-year German Bund yield rose to 2.497% as HSBC said on Tuesday it expects a European Central Bank (ECB) deposit rate of 4% by the end of the year, two new increases in the cost of credit being anticipated after June.
(Written by Claude Chendjou, with Danilo Masoni in Milan, edited by Blandine Hénault)
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