CashNews.co
European shares closed on a high note Tuesday, buoyed by strong performances from China-exposed luxury giants and automakers. These gains followed the announcement of broad stimulus measures by China’s central bank aimed at reviving its ailing economy.
The pan-European STOXX 600 index climbed 0.7%, with France’s market, home to several luxury brands, leading the way with a 1.3% increase. Economists at TS Lombard noted that the announcement boosts confidence and will aid household consumption, though it may not be enough to stabilize the broader economy.
European luxury firms, heavily reliant on Chinese consumer spending, saw the biggest gains, with LVMH up 3.2% and Cartier-owner Richemont rising 4.1%. Basic resources also surged by 4.4%, marking their largest single-day gain in 22 months. Local European markets mostly ended higher, though the UK’s FTSE 250 slipped by 0.4% due to significant losses in homeware retailer Dunelm.
(With inputs from agencies.)