European Stocks Drop as Luxury Earnings, China Data Disappoint

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European equities dropped after a weak economic data release from China and as disappointing updates from Swatch Group AG and Burberry Group Plc dragged down luxury shares.

The Stoxx Europe 600 fell 1% by the close after gaining for three straight sessions. The consumer products sector lagged alongside utilities as luxury stocks tumbled, while media as well as travel and leisure stocks outperformed.