Tepid China data, Richemont pull down European shares By Reuters
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 13, 2023. REUTERS/Staff
(Reuters) – European shares fell on Monday as China’s lacklustre economic data knocked down commodity-linked stocks, while luxury group Richemont slumped on weaker-than-expected organic sales growth.
The pan-European index was down 0.5% by 0706 GMT. The benchmark index posted gains of nearly 3% in the previous week, driven by hopes that the U.S. Federal Reserve could wind up its interest rate hikes soon.
Data on Monday signalled China’s economy grew at a frail pace in the second quarter on weaker demand, leading to a fall in commodity prices, which dragged miners and energy firms down 1.6% and 0.8%, respectively.
Shares of Richemont dropped nearly 7% after the world’s second-biggest luxury firm reported a 19% rise in its quarterly organic sales, but fell short of analysts’ estimates.
Shares of other China-exposed luxury firms such as LVMH, Hermes and Kering (EPA:) slumped between 2% and 2.7%.
