European Stocks Rally as Energy Prices Cool

The pan-European STOXX 600 index rose 1.1% in broad-based buying to reverse weekly losses, with miners, automakers and utilities in the lead.

Oil prices dropped for a second session, while European gas futures also fell back from record highs. [O/R]

There was also some relief on the U.S. debt ceiling front after U.S. Senate Republican Leader Mitch McConnell announced plans to extend the borrowing limit into December.

French luxury goods maker Hermes jumped 3.1% after HSBC upgraded the stock to “hold”, while peers LVMH, Richemont and Kering all rose more than 2%.

Royal Dutch Shell inched up 0.4% after saying that soaring natural gas and electricity prices around the world will provide a significant boost to its cashflow in the third quarter.

Swiss construction chemicals maker Sika rose 2.0% after it said it could overcome rising raw material costs and supply chain restrictions to increase its sales and profit margins this year.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)

European Stocks Add to Losses on Growth Worries

The pan-European STOXX 600 index slipped 0.2% by 07:18 GMT, holding near a two-month low hit in last week’s selloff.

Banks, automakers and luxury stocks were the top decliners on fears of a slowdown in global growth as the world’s second largest economy deals with fresh COVID-19 restrictions, a property sector slowdown and regulatory clampdowns.

French luxury stocks Kering and LVMH, which draw a major portion of their revenue from China, fell 1.9% and 1.5% respectively.

Morrisons fell 3.8% after U.S. private equity firm Clayton, Dubilier & Rice (CD&R) won the auction for Britain’s supermarket group with a 7 billion pound ($9.5 billion) bid.

Rivals Tesco and Sainsbury inched up.

UK telecoms group BT Group and Nordea Bank were the top losers on STOXX 600, down more than 6% each.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty)

 

German Shares Slump 2%, European Index Hits Two-Month Lows

The pan-European STOXX 600 index was down 1.5% by 07:45 GMT, with mining stocks plunging 3.2% on a slide in commodities prices.

Asian equities also skidded following a torrid session for China Evergrande, the world’s most indebted property developer.

The benchmark European STOXX 600 has now fallen for three straight weeks on worries about slowing global growth, soaring inflation, persistently high COVID-19 cases and the spillover from tighter regulation of Chinese firms.

The U.S. Federal Reserve’s policy meeting is in focus on Tuesday and Wednesday, where the central bank is expected to lay the groundwork for a tapering. Overall, 16 central banks are scheduled to hold meetings this week, including in the UK, Norway, Switzerland and Japan.

“To be sure, the (Fed) is set to default to keeping the QE (quantitative easing) spigots open at this week’s (meeting), given the sizable August jobs disappointment alongside a spotting of soft economic indicators,” said Vishnu Varathan, head of economics and strategy at Mizuho.

“But this merely defers taper. By how much is the question.”

German shares tumbled 1.8% to their lowest since late-July as data showed a bigger-than-expected jump in producer prices last month.

In its biggest ever overhaul, the blue-chip German index began trading on Monday with an increase in the number of constituents to 40 from 30.

Europe’s fear gauge jumped to a four-month high.

China-exposed luxury stocks such as LVMH, Kering, Hermes and Richemont fell between 2.5% and 3.7%, extending sharp losses from last week.

Daimler AG shed 2.3% as a report cited the chief of its truck division, the world’s largest, as saying the unit had seen the supply of crucial chips tighten further in recent weeks.

Lufthansa, on the other hand, reversed early declines to jump 3.1% after saying it expects to raise 2.14 billion euros ($2.51 billion) to pay back part of a state bailout that Germany’s top airline received during the coronavirus crisis.

All major European subindexes were lower in morning trading, with healthcare, utilities, food and beverage and real estate posting the smallest declines. The group is perceived to be a safer bet at a time of heightened economic volatility.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur)

Luxury, Mining Stocks Weigh on Europe Ahead of U.S. Inflation Data

The pan-European STOXX 600 index was down 0.2% after a partial recovery on Monday from last week’s slump.

Luxury stocks including LVMH, Kering and Richemont fell between 1.6% and 2.0%, tracking their Asian peers lower on concerns about the spread of COVID-19 cases in China.

Jewellery maker Pandora rose 3.7% after it said it aims to achieve sales growth between 6.0% and 8.0% over the coming years.

Mining stocks dragged UK’s commodity-heavy FTSE 100 0.3% lower, even as data showed British employers added a record 241,000 staff to their payrolls last month.

Danish brewer Carlsberg fell 2.6% after a double downgrade to “sell” by Berenberg.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

European Shares End Higher on Commodity Recovery After Bruising Week

The pan-European STOXX 600 index closed 0.7% higher after losing nearly 1.5% last week. Oil and mining were the best performing sectors, rising about 2.1% and 1.5% respectively.

Sentiment appeared to have improved after growing uncertainty over when the U.S. Federal Reserve would begin tightening policy, which sparked a broad selloff across global markets last week.

Focus now turns to the Fed’s annual Jackson Hole Economic Policy Symposium beginning later in the week.

“With the Jackson Hole meeting beginning on Thursday, investors may be reluctant to make big new commitments in the next couple of sessions,” Ian Williams, economics & strategy research analyst at Peel Hunt, said.

Data in Europe suggested that business activity remained strong in August, albeit at a slightly slower growth pace than the two-decade peak seen in July.

With a nearly 18% rise so far this year, the STOXX 600 hit a record high earlier this month, but has stumbled recently on concerns over the Delta variant of COVID-19 stalling economic growth.

Among individual stocks, Britain’s second-largest grocer Sainsbury’s jumped 15.4% and was the best performer on the STOXX 600, following a report that private equity firms were circling the company with a view of possibly launching bids of more than 7 billion pounds ($9.5 billion).

Last week, smaller rival Morrisons backed a 7 billion pounds offer from U.S. private equity group Clayton, Dubilier & Rice.

Germany’s BioNTech surged 7.6% after the U.S. Food and Drug Administration granted full approval to the Pfizer Inc/BioNTech COVID-19 vaccine.

Luxury stocks including LVMH, Kering and Moncler clawed back some of last week’s losses after being sold off on China’s wealth redistribution plans.

Switzerland-based Cembra Money Bank plunged 30.9% to the bottom of the STOXX 600 after it terminated its credit card partnership with Swiss retailer Migros.

French lottery operator La Francaise des Jeux fell 1.7% after Goldman Sachs downgraded the stock to “sell”.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar and Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta and David Holmes)

Star Black Designer Virgil Abloh Gets Bigger Role at LVMH

By Mimosa Spencer

Abloh, 40, a U.S. national who also works as a DJ and visual artist, was hired by LVMH in March 2018 to create menswear collections for Louis Vuitton, the luxury giant’s biggest revenue driver.

He will continue in that role while also working with the group to launch new brands and partner with existing ones in a variety of sectors beyond fashion, the company said on Tuesday.

His arrival at LVMH marked the marriage between streetwear and high-end fashion, mixing sneakers and camouflage pants with tailored suits and evening gowns. His influences include graffiti art, hip hop and skateboard culture.

The style was embraced by the world’s biggest luxury group – led by France’s richest man, 72-year old Bernard Arnault – as it sought to breathe new life into some labels and attract younger customers.

The sale to LVMH and higher profile for Abloh also show renewed interest from the group in launching new brands, after putting its Fenty label fashion venture with Rihanna on hold in February.

Over the past three years, Abloh has drawn on messages of inclusivity and gender-fluidity to expand the Louis Vuitton label’s popularity, weaving themes of racial identity into his fashion shows with poetry performances and art installations.

With an eye to reaching Asian consumers grounded by the coronavirus pandemic, the designer sent his collections of colourful suits and utilitarian-flavoured outerwear off to Shanghai last summer when many labels cancelled fashion shows.

More recently, he designed U.S. film director Spike Lee’s clothes, including a hot pink double-breasted suit, for this month’s Cannes film festival, where Lee chaired the jury.

LVMH is also purchasing a 60% stake of Abloh’s Off-White label, which will be folded into the spirits-to-jewellery conglomerate.

Abloh will retain a 40% stake and continue as creative director of Off-White, which he founded in 2013. Financial terms of the deal were not disclosed. Abloh, who was raised near Chicago by parents from Ghana, said LVMH would help him to develop Off-White into a “truly multi-line luxury brand” while he hoped his expanded role at the French company would also help to foster diversity in the industry.

The prolific designer has drawn on his training in engineering and architecture for a wide range of products, collaborating with LVMH-owned Rimowa on a line of see-through suitcases as well as champagne bottles for the group’s label Moet & Chandon.

He also introduced popular partnerships with brands such as Nike and Ikea.

Abloh first gained experience at the luxury group as an intern at LVMH-owned Fendi, alongside Kanye West, in 2009.

The Off-White brand is known for its luxury urban style, featuring hoodies that start at around 400 pounds ($543.64).

LVMH earlier this month took a minority stake in a new clothing and accessories label that is being launched by the former Celine designer Phoebe Philo under her own name.

($1 = 0.7358 pounds)

(Additional reporting by Dominique Vidalon; editing by Silvia Aloisi and Jane Merriman)