At approximately 2.30 p.m. CET on Tuesday May 23, the Stoxx Europe Luxury 10 index was down by 4.18%, heading towards its largest in-session drop since mid-December. In comparison, the pan-European Stoxx 600 index was losing 0.48% at the same time.The downturn was felt across a number of groups and labels. In Paris, LVMH (down 5.01%), Hermès (down 6.54%) and Kering (down 2.97%) accounted for three of the four largest drops in the CAC 40, alongside Vivendi’s (down 3.81%). Elsewhere in Europe, Burberry, Tod’s, Moncler and Richemont posted losses between 1.4% and 4.76%.

While LVMH has gained more than 20% on the stock market since the start of the year, Deutsche Bank said on Tuesday it is time for investors to be “more selective” with regards to luxury stocks. Deutsche Bank stated there are signs that growth is slowing down in the USA, although the market in Europe continues to show some resilience, and remains buoyant in China.The yield of the German 10-year Bund rose to 2.497%, as HSBC said on Tuesday it expects the European Central Bank’s deposit rate to rise to 4% by the end of the year, with two further interest rate hikes expected after June.(with Reuters)