Shares fall as luxury sector hit by weak Richemont earnings

European shares fell on Monday as Richemont led a slide among luxury firms on weaker-than-expected organic sales growth and as lacklustre economic growth in China raised concerns about demand from the world’s second biggest economy.

Dublin

The Iseq Overall Index started off the week on a downbeat note, tracking European stocks as the market fell 0.7 per cent.

Heavyweight stock CRH was down half a per cent, while Kerry lost almost 1 per cent and Glanbia was flat. Insulation specialist Kingspan rose 0.8 per cent, finishing the day at €70, while Ryanair gained 0.4 per cent to close at €16.64, recovering some of the ground it lost late last week on the back of more strike news later this month at London’s Gatwick Airport.

Paddy Power-owner Flutter Entertainment saw shares shed almost 3.3 per cent by the closing bell.

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Financial stocks performed well, with Bank of Ireland and AIB ending the day up 1.5 per cent and 1.1 per cent respectively. FBD closed at €12.75, up 0.4 per cent over the day.

London

The blue-chip FTSE 100 lost 0.4 per cent, while the more domestically focused FTSE 250 midcap index fell 0.9 per cent.

Industrial metal miners dipped 2.6 per cent as prices of most base metals came under pressure. Heavyweight energy stocks fell 0.5 on lower oil prices.

Focus now shifts to UK consumer prices data due Wednesday, after data last week showed US inflation easing. UK’s inflation is expected to ease slightly in June to 8.2 per cent from 8.7 per cent a month ago.

Housing related stocks such as real estate and home builders fell 1.7 per cent and 0.8 per cent respectively.

The commodity-heavy FTSE 100 has fallen over 7 per cent from the record-high levels hit in February as prices of oil and metals wavered on demand concerns in China.

Among individual stocks Aston Martin jumped 3.7 per cent after Barclays raised the target price on the stock to £375 (€436).

Johnson Matthey gained 0.7 per cent after Deutsche Bank upgraded the rating on the chemicals maker to “buy” from “hold.”

Europe

The pan-European STOXX 600 index closed 0.6 per cent lower, with luxury giants at the forefront of the selling pressure.

Shares of the world’s second-biggest luxury firm Richemont dropped 10.4 per cent in their sharpest one-day percentage fall in over a year after weakness in the Americas weighed on first-quarter organic sales growth. Other luxury giants, including LVMH, Europe’s most valuable company, Hermes, Salvatore Ferragamo and Kering shed between 1 per cent and 4.2 per cent.

The personal and household goods index, housing luxury firms, was the biggest sectoral loser, down 2.6 per cent. The Swiss Market index and luxury-heavy French stocks both fell over 1 per cent to lead regional declines.

Belgium’s Argenx jumped 31 per cent to the top of the STOXX 600 as its muscle-weakening disease drug met its main goal.

New York

The tech-heavy Nasdaq led Wall Street higher on Monday supported by megacap growth stocks, including Apple and Tesla, ahead of quarterly results from industry heavyweights through the week.

Apple climbed 1.2 per cent after Morgan Stanley raised its target price on the iPhone-maker.

Tesla gained 1.9 per cent after the company said on Sunday it had built its first Cybertruck after two years of delays.

Rival Ford shed 4.9 per cent after the carmaker slashed the prices of its popular electric F-150 Lightning trucks. Other automakers like Rivian and General Motors slid more than 3 per cent each.

By lunch in New York the Dow Jones Industrial Average was up 0.25 per cent at 34,596.31, the S&P 500 was up 0.31 per cent at 4,519.18, and the Nasdaq Composite had risen 0.64 per cent to 14,203.95. – Additional reporting: Reuters