2 months ago
Stock Market

MarketPulse Europe: Shock China Trade Data Slams Luxury Stocks

Investing.com - Shares in top European luxury goods companies plunged across the board on Monday, after data showing weakening imports

Investing.com - Shares in top European luxury goods companies plunged across the board on Monday, after data showing weakening imports and exports in China prompted investors to flee the sector.

The pan-European Stoxx 600 Personal Goods Index was down 1.3% by 6:49AM ET (11:49 GMT), reversing some of last week's gains which saw it hit a one-month high.

LVMH (PA:LVMH) and Gucci owner Kering (PA:PRTP) were among the biggest fallers in Paris, each down around 3%, while Hermes (PA:HRMS) and Christian Dior (PA:DIOR) both declined by 2%.

Meanwhile, Moncler (MI:MONC) was off by more than 3% in Milan, while Hugo Boss (DE:BOSSn) saw shares slide 1.5% in Frankfurt.

China's December exports unexpectedly fell 4.4% from a year earlier, the most in two years, according to data released earlier. Imports also saw a shock drop, falling 7.6% in their biggest decline since July 2016.

The Asian nation, which is the world's second largest economy, is a major source of revenue for many luxury goods firms, which rely on appetite for handbags and jewelery from China's growing middle class.

-- Reuters contributed to this report