The news of trade thaw between US and China It will also bring relief to Chinese consumers who will be able to start purchasing more peacefully again and the fashion and luxury sectors could benefit from this, as shown by the shares listed on the European stock exchange: from Kering to Ferragamo and LVMH, all the stocks are up since yesterday, in some cases by double digits.
The luxury and fashion sector has been suffering from a decline in Chinese buyers since the pandemic. The trade war between USA and China had further slowed down purchases and triggered strong concerns about domestic demand, so much so that the Chinese government had tried on several occasions to provide support to private consumers. But yesterday, the outcome of the Geneva negotiations, which led to a 90-day suspension of part of the customs tariffs of the two countries, gave consumers a hand. Stocks in the sector immediately reacted with a rise that continued today.
The biggest increase is seen on the French
On the stock exchange, the most buoyant are the French. In Paris the prices of Kering, the parent company of Gucci, which yesterday exceeded +10%, continue this morning with another +3% to 192,88 euros. lvmh, which controls Louis Vuitton e Dior, yesterday it gained over +7% and this morning it added another +1,5%, while Hermès gained another 1% this morning, adding to yesterday's +4,5%.
A Business Square the better it is Salvatore Ferragamo which after yesterday's +7% adds another +1% this morning, followed by Moncler (yesterday +5% and this morning +0,90%) and from BRUNELLO CUCINELLI (yesterday +4%, this morning +2%). In London the title Burberry share price gains over 3% this morning after yesterday's +5,6%, while in Zurich the stock Richemont adds a +1,5% this morning to yesterday's gain of 6,8%.
“The thaw in trade between the US and China has created greater relaxation in the markets, increasing the risk appetite in general. The luxury sector benefits indirectly in the wake of a greater propensity to consume,” says an analyst in the sector.
Precisely to revive the low consumer confidence and deflationary pressures in the world's second largest economy after the announcement of US tariffs, Chinese government in March it had announced a plan to boost domestic demand, including by increasing the purchasing power and reducing the Financial chargesThe escalation of the trade war that began in February had frozen any propensity to spend, but now things could change, analysts say.
