Europe open: Shares follow US, Asia lower; weak LVMH sales hit luxury sector

16th Oct 2024 08:16

(Sharecast News) - European shares were lower at the open on Wednesday after a mixed session on Asian markets and declines on Wall Street, while investors also digested the latest UK inflation data showing a fall below 2% for the first time in three years.

The pan-European Stoxx 600 index was down 0.46% at 518 points in early deals. Britain's FTSE 100 outperformed with a 0.62% gain as inflation fell more than expected in September, likely ramping up the pressure on the Bank of England to get more aggressive with monetary easing

The annual change in the consumer price index (CPI) slowed to just 1.7% last month, down from 2.2% in August. This was well below the 1.9% expected by economists and the first time below the 2% mark since April 2021.

In equity news, shares in luxury goods maker LVMH slumped lower after reporting a 3% fall in third-quarter sales. The news hit the sector, with rival Kering, Burberry and Christian Dior all lower.

Whitbread gained as the Premier Inn owner targeted higher profits in the next five years after increasing its interim dividend and unveiling an extension of its share buyback by £100m.

Shares of ASML fell after the Dutch chip firm published financial results a day early, issuing disappointing sales forecasts.

Tecan slumped as the Swiss lab equipment maker cut earnings forecasts.

Reporting by Frank Prenesti for Sharecast.com