STOCK EXCHANGE: Luxury companies in a slump in Europe

The luxury sector weighed on European stock market indices on Wednesday. The Eurostoxx 50 index was down 0.9 percent in the morning.

The luxury giant announced its results yesterday LVMH,’s organic turnover fell by five percent, contrary to analysts’ expectations. The company also warned investors about the uncertainty of the economic and geopolitical situation.

The decline in sales was mainly due to sluggish demand from Chinese consumers, which caused pressure on Asian stock markets as well.

LVMH’s share price was down almost six percent this morning. From other companies in the luxury sector Dry was almost five percent and HermAnds a decrease of almost three percent.

France’s CAC 40 was down about one percent and Germany’s DAX was down 0.3 percent.

The British FTSE 100 index swam against the current. In Britain, inflation in September fell below economists’ forecasts and the central bank’s two percent target, which strengthened expectations of an interest rate cut next month.

Inflation was 1.7 percent in September, while in August the reading was 2.2 percent and the economists’ forecast was 1.9 percent.