The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 13, 2023. REUTERS/Staff/File photo
European shares experienced a decline on Monday following China’s uninspiring economic data, which negatively impacted commodity-linked stocks. Additionally, luxury group Richemont saw a significant decrease in share value due to weaker-than-expected organic sales growth.
As of 7:06 GMT, the pan-European STOXX 600 index dropped 0.5%. In the previous week, the index had recorded a growth of nearly 3% on hopes that the U.S. Federal Reserve would soon conclude its interest rate hikes.
China’s second-quarter economic data indicated a sluggish growth rate, resulting in a decline in commodity prices. This, in turn, caused mining and energy firms to experience a decrease in stock value of 1.6% and 0.8%, respectively.
Read: China’s Q2 GDP growth slows to 0.8% q/q, raises stimulus expectations
Shares of Richemont witnessed a nearly 7% decline after reporting a 19% increase in quarterly organic sales, falling short of analysts’ predictions. Other China-exposed luxury firms such as LVMH, Hermes, and Kering also saw a decline in shares, ranging from 2% to 2.7%.
Read: As travel resumes, China’s luxury shoppers ask: Paris or Hainan?
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
