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European markets opened lower Tuesday as regional sentiment sours further after a shaky start to the week, with investors watching the conflict in the Middle East closely and its potential impact on oil markets, supply chains and the global economy.
The pan-European Stoxx 600 was down 0.81% in early deals, with all sectors and major bourses trading in the red. Mining stocks shed 3.65% while household goods fell 2.1%.
European luxury stocks, including powerhouse brands LVMH and Kering, retreated on the open as sentiment turned sour on a potential demand boost from stimulus measures in the key Chinese market.
Elsewhere overnight, U.S. stock futures were little changed following a losing day on Wall Street Monday as rising oil prices and bond yields weighed on markets.
In the Asia-Pacific region, an initial rally for Chinese markets lost steam after a briefing from the country's National Development and Reform Commission provided few details on further stimulus.
Earlier, mainland China's CSI 300 index had skyrocketed over 10% at the open at its return from the Golden Week holiday, but the index pared gains later in the session.
Key releases for markets this week include U.S. Federal Reserve minutes and German trade on Wednesday, U.S. inflation on Thursday and U.K. economic growth on Friday.
UK homebuilder Vistry tanks 28% on profit warning
U.K. housebuilder Vistry slumped to the bottom of the Stoxx 600 after saying its full-year profits will be nearly one-fifth lower than expected due to unexpected building costs within some of its projects.
The added costs stem primarily from projects in its southern division and led the firm to reduce its expectations for 2024 adjusted pre-tax profit by £80 million, with added costs expected over the next two years. It now expects adjusted pre-tax profit to be around £350 million for the year.
The firm's shares were last trading 28% lower as of 8:52 a.m. London time.
— Karen Gilchrist
LVMH and Kering shares slump as luxury sector pulls back from China rally
Bernard Arnault, Chairman and CEO of LVMH Moet Hennessy Louis Vuitton, speaks during a press conference to present the 2023 annual results of LVMH in Paris, France, January 25, 2024.
Benoit Tessier | Reuters
Shares of LVMH and Kering fell at the market open as luxury stocks pulled back from a China stimulus rally.
LVMH was down 3.84% and Kering was 5.05% lower by 8:15 a.m. as markets in mainland China reopened following the mid-Autumn Festival and turned sour on a stimulus package announced last week.
Luxury companies, hard hit by a slump in Chinese consumer spending, had hoped to benefit from China's economic recovery. Burberry also shed 5.9% while Christian Dior was down 3.8%.
European markets open lower
European markets opened lower Tuesday as regional sentiment sours further after a shaky start to the week.
The pan-European Stoxx 600 was down 0.81% in early deals, with all sectors and major bourses trading in the red. Mining stocks shed 3.65% while household goods fell 2.1%.
Stoxx 600.
— Karen Gilchrist
Oasis ticket sales fuel discretionary spending as UK retail sales jump
Fan Emily McShane, takes a photograph of a new street artwork depicting Oasis' Liam and Noel Gallagher, created by Manchester-based street artist Pic.One.Art. on the side of the Sifters Record store in Burnage, a suburb of Manchester, northern England on August 27, 2024.
Paul Ellis | Afp | Getty Images
U.K. discretionary spending shot up in September, with consumers forking out on Oasis tickets and other non-essentials, even as the upcoming government Budget weighs on consumer confidence.
Retail sales rose 2% year-on-year last month, rising above the three-month average, as shoppers hit the high street to update their wardrobes, fresh data released Tuesday by the British Retail Consortium (BRC) showed.
"Retail sales saw the strongest growth in six months as non-food performed better than expected. As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear," BRC CEO Helen Dickson said.
It coincides with the release of Barclays' consumer card report, which showed the fastest growth in non-essential spending this year, with a 2.7% year-on-year increase in September. It attributed it to a 36% annual jump in spending on concerts and shows, including the Oasis brothers' forthcoming 2025 tour.
— Karen Gilchrist
October is a good time to use 'healthy' pullbacks to add to positions, Piper Sandler says
October is traditionally a volatile month, but Piper Sandler believes that investors can use the market's actions to their advantage.
"Historically, October tends to be a 'backing and filling' month as investors react to the Q3 earnings season results. We would continue to use 'healthy' pullbacks to add to positions, especially among leading SMID-caps in the Industrial, Financial, and Technology sectors," the investment firm wrote in a Monday note.
In the note, Piper Sandler stood by its year-end S&P 500 target of 5,800. This implies that the broad market index could rise less than 1%.
— Lisa Kailai Han
Stock futures inch higher
Stock futures were slightly up shortly after 6 p.m. ET.
Dow and S&P 500 futures rose around 0.1% each. Nasdaq 100 futures added 0.2%.
— Alex Harring
European markets: Here are the opening calls
European markets are expected to open in mixed territory Tuesday.
The U.K.'s FTSE 100 index is expected to open 47 points lower at 8,302, Germany's DAX down 181 points at 18,915, France's CAC 77 points lower at 7,501 and Italy's FTSE MIB up 220 points at 33,814, according to data from IG.
Earnings are set to come from OMV and data releases include the BRC retail sales monitor, German industrial production and France's latest trade balance.
— Holly Ellyatt
English (US) ·