Analysis-Europe's Luxury stocks at risk of going out of style

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 53%

Business News News

Business Business Latest News,Business Business Headlines

Analysis-Europe's Luxury stocks at risk of going out of style

© Reuters. FILE PHOTO: A model presents a creation by designer Nicolas Ghesquiere as part of his Spring/Summer 2024 Women's ready-to-wear collection show for fashion house Louis Vuitton during Paris Fashion Week in Paris, France, October 2, 2023. REUTERS/Stephanie L

Some $175 billion has been knocked off the value of those 10 stocks since the end of March as China's recovery has been rocky and growth is slowing, while high inflation and rising interest rates are forcing U.S. shoppers to tighten their purse strings. Ahkong pointed to rising concern over the outlook for luxury consumption across the U.S., Europe and China, a view echoed by Peter Garnry, head of equity strategy at Saxo Bank.

Some analysts have turned cautious on the luxury sector, with UBS last week reducing its estimates to account for the risk of slowing Chinese consumption. Gerry Fowler, head of European equity strategy and global derivative strategy at UBS, said risks in luxury stocks started to become more apparent in May.Though consensus has turned more cautious, several market players and analysts remain optimistic for the long-term.

"Up to now, luxury names were seen as a place to hide, it was really consensual. That was also the reason why we were not so keen to be overweight at the beginning of the year," he said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Analysis: Europe's Luxury stocks at risk of going out of styleEurope's luxury brands may have sparkled at Paris Fashion Week, but investors are questioning their taste for the shares in the face of a Chinese slowdown and interest rate uncertainty.
Source: Reuters - 🏆 2. / 97 Read more »