The News
The absence of broader stimulus moves from Beijing is reverberating in Europe’s luxury fashion houses, which rely on Chinese sales. Stocks initially surged in the wake of promises to kickstart consumption, but luxury shares dipped Tuesday after Beijing failed to announce more aggressive actions.
Chinese consumers account for a third of global luxury spending for Europe’s high-end brands, The Wall Street Journal reported, and the marques’ fates are traditionally intertwined with the Chinese housing market. During a property slowdown, someone watching their home value plummet might be less likely to splurge on a designer handbag. The Chinese government is rolling out incentives to boost spending, but those will probably target mass-market appliances like white goods, the Journal noted.