China'S Luxury Goods Prices Rose In The Bull Market In Europe And The United States

Shares of some luxury goods companies in the US and Europe rose strongly after the opening of trading on Monday, affected by the positive situation in China's stock market this week.

On July 6, China's CSI 300 index rose 5.7%, the biggest one-day gain since February 2019. The CSI 300 closed on Monday at a five-year high, although it is still 13% below its June 2015 high.

Affected by this, the European market began to rise in the late half day, and some luxury brands also rose. The French luxury group ended the day up 404.2% on Monday. Hermes international, the parent company of French luxury brand herm è s, rose 2.67% in a single day to close at 770 euro.

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Gucci closed 1% higher on the same day in the cloud group. Richemont, the parent company of high-end jewelry Cartier and van clenburg, rose 3.7% on Monday and Tuesday and closed at 63.5 euro on the 7th.

At the same time, some luxury stocks on Wall Street in the United States also showed a growth trend. Shares of coach parent company tapestry group and high-end jewelry family Tiffany & Co. both showed a slight increase on Monday after the return of the "Independence Day" holiday in the United States.

Although the number of new cases of new coronavirus infection in the United States has surged in the past week, optimism in China has brought positive signals to global capital markets, prompting Wall Street investors to be optimistic about stocks related to the China concept.

Nikesh Patel, chief investment strategist at Kempen capital management, was quoted by the financial times as reporting that positive sentiment in the Chinese market is spreading in the global market, and investors expect China's demand for foreign goods to increase.

This includes the resumption of growth in China's luxury market. In 2020, the retail market has been regarded as the key market of China.

Bain pointed out in a report that China, which accounts for 35% of global luxury goods consumption, is becoming a pioneer in the future recovery of luxury goods market. The Boston Consulting Group (BCG) predicts that China's luxury goods market will grow against the trend in the global luxury market slump in 2020, which is likely to not only match the losses caused by the epidemic at the beginning of the year, but also be able to grow up to 10% against the trend.

However, the recovery of China's luxury market cannot offset the losses suffered by the global luxury market in 2020. Claudia d'arpizio, a partner of Bain, said in an interview with the BBC that the rebound in sales in China could not offset the loss of Chinese consumers in overseas luxury markets. Travel restrictions have led to a sharp decline in Chinese consumers' global luxury consumption this year, "much less than last year."

The overall recovery of luxury goods market this year will depend on the effect of global epidemic prevention and control. Luxury retailers are hard to predict the overall impact of the epidemic on this year's revenue as the epidemic has rebounded in Europe and the United States. After a small rise on Monday, shares of some luxury brands began to fall on Tuesday.

Although European and American stock markets rebounded from March lows this week, some investors have said they will wait until they see strong evidence that corporate earnings have recovered. "Global stock markets will remain near their current levels for 12 months," Citibank expects