European Stocks Slide on Luxury Drag; FTSE 100 Erases 2023 Gain

European stocks closed May with their biggest monthly drop this year as luxury companies slumped after data showed China’s economic recovery faltering. A slide in energy stocks pressured the commodity-heavy FTSE 100 Index, which has now erased all its 2023 gains.

The Stoxx Europe 600 closed down 1.1% at its lowest in two months, extending declines after figures showed vacancies at US employers unexpectedly surged in April to the highest in three months, fueling worries about Federal Reserve rate hikes. Data earlier in the day signaled weaker-than-expected readings of Chinese manufacturing and services activity for May. Europe’s largest company, LVMH, and oil giants Shell Plc and BP Plc were the among the stocks weighing down the index the most.