On Wednesday, European equities opened lower, pulled down by a sell-off in luxury stocks following a sales warning from Kering.
Meanwhile, investors remained cautious due to concerns that the Federal Reserve of the United States could imply a slower path of rate cuts this year.
As of 08:06 GMT, the pan-European STOXX 600 index (.STOXX), had experienced a contraction of 0.2%. After luxury goods giant Kering (PRTP.PA), opens new tab warned that its first-quarter sales are anticipated to drop by roughly 10%, the personal and home goods (.SXQP), index fell 1.6%, leading sectoral declines.
After luxury goods giant Kering (PRTP.PA), opens new tab warned that its first-quarter sales are anticipated to drop by roughly 10%, the personal and home goods (.SXQP), index fell 1.6%, leading sectoral declines. This was owing to the fact that star label Gucci was a major contributor to the decline, which was caused by insufficient demand in Asia.
Additional luxury stocks, including LVMH (LVMH.PA), Burberry (BRBY.L), Richemont (CFR.S), and Christian Dior (DIOR.PA), experienced a decline of between 3% and 4.9% as a result of a reaction that was widespread across the industry.
Later on in the day, investors will be keeping an eye out for the data regarding Italy's industrial output for the month of January, as well as the consumer confidence survey for the euro zone for the month of March.
Nevertheless, the primary focus is still on the Federal Reserve's meeting to discuss monetary policy. This meeting is scheduled to take place later in the day, and the United States central bank may provide some insights into its stance regarding interest rate reductions.
After the Swiss contract medicine manufacturer Lonza (LONN.S), reached an agreement to acquire Roche's (ROG.S), opens new tab Genentech manufacturing facility in California for a cash payment of $1.2 billion, the number of shares of Lonza (LONN.S) increased by 4.8%.
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