European stocks mixed; LVMH slumps as sales growth slows
Investing.com — European stock markets traded in a mixed fashion Wednesday, with weakness in LVMH hitting the French market ahead of the release of key U.S. inflation data.
At 04:10 ET (08:10 GMT), the DAX index in Germany traded 0.2% lower, the FTSE 100 in the U.K. rose 0.1%, while the CAC 40 in France dropped 0.8%.
LVMH (EPA:LVMH) stock slumped almost 6% after the French luxury giant reported a 9% rise in third quarter revenue late Tuesday, marking slower growth as a strong wave of post-pandemic spending eased due to inflation and economic turbulence.
LVMH is facing slowing demand for high end goods in the United States and Europe, and this hit other shares in the fashion sector, including rivals Kering (EPA:PRTP), Hermes and Richemont.
However, other losses are limited as a degree of confidence has returned to global equity markets this week after the weekend’s shocking events in the Middle East, helped by dovish comments from a few Federal Reserve officials which have fueling hopes the world’s most important central bank is nearing the end of its interest rate increases.
«I actually don't think we need to increase rates anymore,» Atlanta Fed President Raphael Bostic said Tuesday, at a conference in Nashville, Tennessee.
This follows several Fed officials noting that recent rises in longer-term yields may help do the central bank’s work of tightening financial conditions to tackle inflation, meaning fewer interest rate hikes.
Attention is likely to turn later in the session on to the latest U.S. inflation numbers, starting later Wednesday with the September PPI release ahead of Thursday’s CPI number.
Signs underlying U.S. inflation is moderating are likely to reinforce the recent more dovish tone from Fed members
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