European stock markets saw positive momentum on Thursday, buoyed by strong performance in the luxury sector following impressive results from Richemont, the owner of Cartier, CNBC reports.
The Swiss luxury goods company reported a 10% increase in fiscal third-quarter sales, surpassing expectations and signaling a positive outlook for Europe’s luxury industry.
The regional Stoxx 600 index rose by 0.67%, while retail stocks were up 1.16%. Richemont’s shares surged by 17%, leading the rally in luxury stocks. Other major luxury brands, including LVMH, Kering, and Christian Dior, saw their shares rise by approximately 8%, with Moncler, Burberry, and Hermes also performing strongly.
Richemont’s sales reached 6.2 billion euros ($6.38 billion) for the three months ending in December, marking the company’s highest-ever quarterly sales. This result was particularly noteworthy, given the challenges posed by slower demand in China. The increase in sales was a positive signal for the health of Europe’s luxury sector, particularly during the holiday shopping period.
Technology stocks also saw gains, rising by 1.15%, with semiconductor companies like ASM International and Be Semiconductor benefiting from forecast-beating earnings from Taiwan Semiconductor Manufacturing Company.
Thursday’s strong market performance continued the positive momentum from the previous day, which had been Europe’s best session in four months. Global sentiment was further supported by US consumer price inflation data, which came in slightly below expectations, and positive earnings reports from major US banks like JPMorgan Chase, Citigroup, and Goldman Sachs.
In addition to the luxury sector’s rise, shares of France’s Renault also increased by 3.66% after the company reported a 1.3% year-on-year growth in vehicle sales, driven by a 45% increase in hybrid model sales.
