Europe's luxury stocks hit 7-week low as selloff continues

LONDON, May 24 (Reuters): A gauge of top luxury stocks in Europe fell to seven-week lows on Wednesday as a selloff in the sector continued following a strong run this year that has been key for positive returns across broader European markets.
The fall comes amid growing concerns over a slowdown in luxury demand in the United States, although investors remained upbeat over the outlook for the key Chinese market as the world's second largest economy reopens from pandemic lockdowns.
The STOXX Europe Luxury 10, which tracks top luxury goods makers including heavyweight LVMH, was down 1.5 per cent by 0914 GMT, adding to a 4.3 per cent fall on Tuesday, its biggest daily drop since March 2022.
Following meetings at an industry conference in Paris, Morgan Stanley analysts said the sector's weakness was not fundamentally driven. They added that luxury executives were "largely pointing to a continued moderation in trends in the US compensated though by robust trends elsewhere".