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Luxury Stocks Lose $30 Billion in One Day on Demand Fears
- Deutsche Bank says investors could become more selective
- Analysts flag slowdown in the US as a growing concern
The Hermes International luxury clothing boutique in Paris, France.
Photographer: Cyril Marcilhacy/BloombergA blistering rally in luxury goods stocks this year powered by international demand particularly from China has taken a hit, wiping out more than $30 billion from the sector on Tuesday.
Shares in Hermes International slumped as much as 5.5%, while LVMH Moet Hennessy Louis Vuitton SE dropped around 4% and Gucci owner Kering SA saw its stock decline more than 2%. In the past year, the high-flying sector has become to the European stock market what Big Tech is to the US: a collection of dominant businesses whose growth has held up even as the economy waxes and wanes.