European Stock Markets Close Lower, Impacted by Mining and Luxury Sectors
European stock exchanges predominantly ended the day lower on Tuesday, extending losses from the previous session.
The downturn was significantly influenced by the underperformance of mining stocks, following a revised forecast from Rio Tinto.
Additionally, the luxury sector remained under pressure after Hugo Boss lowered its sales projections, highlighting the challenges in this segment.
In Paris, the CAC 40 index fell by 0.69% to 7,580.03 points. The FTSE 100 index in London decreased by 0.22%, closing at 8,164.90 points.
Meanwhile, in Frankfurt, the DAX index dropped by 0.35% to 18,524.98 points. These figures are preliminary. Rio Tinto’s shares in London saw a decrease of 1.35%.
The world’s second-largest mining company by market value cut its copper production forecast and reported lower-than-expected iron ore shipments.
In Frankfurt, shares of Hugo Boss fell by 8.03% after the German fashion brand revised its annual sales forecast downward.
The company is contending with a sluggish market and specific concerns that could impact its performance in the second half of the year.
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According to Citi analysts Thomas Chauvet and Lorenzo Bracco, these issues could also delay its 2025 targets.
Recent warnings in the luxury goods sector have caused major companies in this segment to lose over $40 billion in combined market value in the last two sessions.
On Tuesday, Kering’s shares dropped by 3.10%, Hermès fell by 2.32%, and LVMH decreased by 1.91% in Paris.
Investors also considered local economic indicators. In Germany, the ZEW index fell to 41.8 points in July but was slightly above expectations.
The eurozone reported a significantly lower trade surplus compared to the positive balance of the previous month. Political developments in the United States were also under scrutiny.
In Milan, the FTSE MIB index slightly fell by 0.02% to 34,369.19 points. Lisbon, the PSI 20 closed higher by 1.04%, at 6,775.93 points.
In Madrid, the Ibex 35 decreased by 0.40%, to 11,098.00 points. These figures are also preliminary.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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