Luxury falls again, weighs disappointment over lack of details on stimulus in China

(Il Sole 24 Ore Radiocor) - Disappointment over the lack of details on the forthcoming stimulus for the Chinese economy - expected from the Dragon's Central Economic Work Conference - weighed on luxury stocks. Indeed, the country is one of the most important hubs for the sector, which has long suffered from the slowdown in consumption in Asia. Thus, paying the price among the blue chips of Piazza Affari are Moncler and Brunello Cucinelli , with the cashmere king also suffering from profit-taking after its 8% rise on the eve of the day, fuelled by revised 2024 estimates. Weak in Paris Lvmh , while Kering and Hermes held up.

In detail, markets were hoping that more details would emerge from the Chinese conference on the expansionary and consumption-supporting measures announced by the Beijing Politburo on 9 December in preparation for Donald Trump's trade war with the US, explains Jian Chang, chief economist for China at Barclays. Indeed, it was the hope for more stimulus that had fuelled the rally in luxury stocks earlier in the week. "However, the result was a bit disappointing," according to Jason Chan, senior investment strategist at Bank of East Asia. Indeed, although the authorities reiterated their commitment to stimulate consumption, the expected information 'on stimulus packages and real estate stock liquidation' did not arrive. Therefore, 'investors may need to wait for further fiscal policy implementation in the first quarter'.