Luxury stocks plunge on the market, weighed down by concerns over China
LVMH, Dior, and Kering Drive the Entire Sector
The movement is concentrated on the market heavyweights. LVMH drops 4.18% to 452.95 euros, CHRISTIAN DIOR falls 4.13% to 426.80 euros, and KERING declines 3.42% to 237.50 euros. Hermès (-2.95%) and L'Oréal (-2.30%) also contribute to the downturn, increasing the negative weighting of the sector.
The macroeconomic context weighs heavily: Chinese producer prices surged by 2.8% year-on-year in April, marking their highest increase since July 2022, fueled by the Brent crude topping 103 dollars amid a diplomatic stalemate between Tehran and Washington. This signal of imported inflation, combined with the upcoming Trump-Xi summit that will need to address tariffs, weakens the stocks most exposed to Chinese consumption and global trade.
A Correction Within a Broader Downward Trend
The session is not an isolated incident. The sector's weighted average price is now below its 50 and 200-session moving averages, indicating that both medium-term momentum and long-term trends remain downward. The sector's RSI at 46.5 reflects a market that is neither oversold nor overheated, theoretically allowing room for further adjustments. The only technical support comes from the weighted MACD, which stays above its signal line, indicating a weakening of the short-term downward momentum.
Today's sequence resembles more a continuation of a cycle of disengagement than a mere technical drop: the factors to watch in the coming weeks will be the trajectory of Brent, the fluidity of the Strait of Hormuz, and the tariff negotiations from the Sino-American summit—three elements likely to have a lasting impact on margins and Chinese demand in the segment.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
