Market Analysis

European stocks fell to their lowest levels in two weeks on Tuesday, driven by a lack of new information regarding China's stimulus measures, which led to a selloff in sectors closely tied to the world's second-largest economy, such as mining and luxury goods.

As of 0714 GMT, the pan-European STOXX 600 index was down nearly 1%, reaching its lowest point since September 23. Luxury brands like LVMH, Kering, Burberry, and Hermes, which rely heavily on Chinese consumers, saw declines between 3.1% and 5%.

Spirits manufacturers Remy Cointreau and Pernod Ricard experienced drops of 5% and 2.8%, respectively, following China’s announcement of provisional anti-dumping measures on brandy imports from the European Union.

The mining sector suffered the most significant losses among European industries, down 3.7%, as copper and iron ore prices fell after initial optimism surrounding China's stimulus plans waned. Meanwhile, China's recent stock market rally began to lose momentum, with Hong Kong shares plunging as officials provided little specific information on how they intend to support the slowing economy.

In individual stock news, Vistry’s shares plummeted nearly 30% after the British homebuilder revised its fiscal 2024 profit outlook downward by £80 million ($104.7 million), citing rising construction costs in one of its divisions.

Paraphrasing text from "Reuters" all rights reserved by the original author.