Key events
Burberry’s struggles and the surprisingly weak Chinese economic figures are putting luxury and fashion stocks across Europe under pressure.
Watch company Swatch Group also reported a steep fall in sales in the first half of its financial year. JP Morgan analysts said that Swatch has one of the highest exposures to China among its European rivals, according to Reuters. they wrote:
We think the sector will likely come under pressure first thing this morning, and notably Richemont, the most obvious read-across.
Cartier owner Richemont fell 2.6% and Louis Vuitton owner LVMH was down 1.7%.
As might be expected after such a brutal set of news on Monday morning, Burberry’s share price has slumped.
The fashion company is down 11% in early trading.
It has been a pretty torrid year. You can see today’s slump in the very bottom right of the below chart, but it has…
