European stock markets fall amid weakness in luxury goods, banking sectors
Date
7/25/2024 5:50:50 AM
(MENAFN) On Wednesday, European stock markets experienced a downturn, primarily driven by a notable drop in luxury goods Stocks following disappointing results from LVMH. The pan-European STOXX 600 index fell by 0.6 percent, with the technology sector bearing the brunt of the decline, plummeting 2.4 percent. A key factor in this drop was Dutch chipmaker ASM International, whose shares plunged by 9.4 percent despite the company raising its third-quarter forecast due to better-than-expected second-quarter orders.
LVMH, the largest luxury goods company globally, saw a 4.7 percent decline in its shares despite reporting second-quarter sales that surpassed estimates. This drop in LVMH’s stock came as a shock to the market, exacerbating the overall negative sentiment. In France, the CAC 40 index, which is a benchmark for the French market, fell by 1.1 percent, lagging behind other regional indices and reflecting broader market concerns.
The banking sector also faced challenges, with European banking stocks overall decreasing by 0.5 percent. Deutsche Bank was particularly affected, with its shares falling by 8.3 percent after the German bank announced its first quarterly loss in four years. This loss was linked to a substantial provision of 1.3 billion euros (approximately USD1.4 billion) set aside for an investor lawsuit, which further dampened market sentiment and contributed to the day's overall negative performance.
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