Tepid China data, Richemont pull down European shares

German share price index DAX graph

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 13, 2023. REUTERS/Staff/File photo

European shares fell on Monday as China’s lackluster economic data knocked down commodity-linked stocks, while luxury group Richemont slumped on weaker-than-expected organic sales growth.

The pan-European STOXX 600 index was down 0.5 percent by 0706 GMT. The benchmark index posted gains of nearly 3 percent in the previous week, driven by hopes that the U.S. Federal Reserve could wind up its interest rate hikes soon.

Data on Monday signaled China’s economy grew at a frail pace in the second quarter on weaker demand, leading to a fall in commodity prices, which dragged miners and energy firms down 1.6 percent and 0.8 percent, respectively.

READChina’s Q2 GDP growth slows to 0.8% q/q, raises stimulus expectations

Shares of Richemont dropped nearly 7 percent after the world’s second-biggest luxury firm reported a 19-percent rise in its quarterly organic sales, but fell short of analysts’ estimates.

Shares of other China-exposed luxury firms such as LVMH, Hermes and Kering slumped between 2 percent and 2.7 percent.

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