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European shares falter, LVMH results help luxury sector shine
October 10, 2017 / 7:33 AM / 2 months ago

European shares falter, LVMH results help luxury sector shine

LONDON, Oct 10 (Reuters) - European shares dipped on Tuesday following a slightly weaker session on Wall Street as stocks tired from a streak of record highs, but strong results from luxury group LVMH helped support stocks across the consumer goods sector.

The STOXX 600 slipped 0.1 percent but held near three-month highs, after MSCI’s global stock index touched a fresh all-time high in early deals.

Spain’s IBEX lagged European peers, down 0.5 percent as investors awaited an address by Catalan independence leader Carles Puigdemont to the regional parliament at 1600 GMT.

Though the address, which investors fear may result in a declaration of independence, would be after the close, nerves hit shares in Caixabank and Banco Sabadell, the banks most exposed to Catalonia, which fell 0.7 to 1.1 percent.

Third-quarter results began trickling in, with a strong beat from LVMH driving stocks across the luxury and consumer sectors higher.

Shares in the world’ biggest luxury group rose 1.8 percent after it beat sales and revenue forecasts in its third quarter, setting a high hurdle for European luxury peers to beat.

Luxury brands Christian Dior, Gucci owner Kering and Moncler also gained, rising 1.6 to 1.8 percent after the robust performance from the group Bernstein luxury analyst Mario Ortelli said is a “bellwether” for the industry.

Swiss fragrance and flavours maker Givaudan gained 3.2 percent after the firm stuck to its 2020 targets and reported third-quarter sales up 5.7 percent, beating analysts’ estimates.

Dassault Aviation shares fell 3.3 percent, with traders citing comments from the CEO over delays to its Falcon 5X business jet.

Reporting by Helen Reid; Editing by Georgina Prodhan

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