European stocks are at two-week lows

European stocks fell on Tuesday to their lowest levels in two weeks after the absence of new details on Chinese stimulus measures triggered a wave of selling in shares of sectors linked to the world’s second-largest economy, such as mining and luxury goods.

The European STOXX 600 index fell around 1% during today’s trade to touch its lowest levels since September 23, before losses at the time of writing narrowed to 0.43%, giving the index level to 517.26 points.

Luxury companies

Shares of luxury goods companies, such as LVMH, Kering, Burberry and Ermes, which have a large share of their revenue from… Chinawith rates between 3.1% and 5%.

The mining sector was the biggest European decliner, falling 3.7% on the decline in copper and iron ore prices after optimism about stimulus measures taken by China, the -most used in the world.

Chinese stocks began to lose momentum on Tuesday, and stocks fell Hong Kong 9.4% after officials disappointed market traders when they revealed few details about plans aimed at supporting the slowing economy.

Among corporate stocks, Vestry stock fell about 30% after the British homebuilder cut its 2024 profit forecast by 80 million pounds ($104.7 million) as one of its divisions was hit by higher construction costs.

China’s National Development and Reform Commission Chairman Jing Shanji said China is confident it can achieve its economic growth goals this year, but did not announce new stimulus measures.

European stock exchanges saw waves of China-linked stocks sell off (Reuters)

A broken hope

Investors were hoping for new Chinese measures to revive the economy, 10 days after the first batch led to a significant improvement in the Chinese stock market.

But the authorities disappointed hopes, because committee officials did not announce new measures despite the problems facing the Chinese economy, especially the crisis in the real estate sector and declining household consumption.

China set an economic growth target of around 5% this year, a number that was considered optimistic by several analysts in a country that has been suffering from the pandemic. corona.