Luxury goods stocks retreat as investors weigh China stimulus plan
European luxury goods stocks retreated on Monday as investors assessed the latest hints about Chinese stimulus measures.
As of 9:35 a.m. London time, the stock price of Gucci parent company Kering fell 3.6%, LVMH fell 2.74%, and the stock prices of Burberry and Christian Dior fell about 2%. %.
Over the weekend, Chinese Finance Minister Lan Foan hinted that more bonds would be issued as the country aims to boost its economy. He also said more stimulus measures may be forthcoming.
However, many investors and analysts have been hoping for a major new stimulus package to be announced at the conference.
Susannah Streeter, head of currencies and markets at Hargreaves Lansdown, told CNBC on Monday: “The stimulus package has again underwhelmed. People are hoping for more clarity on the level of support for consumers, especially for consumers. Consumer support.
She explained that China’s housing market crisis has affected perceptions of wealth, leading to more cautious spending.
“This means many shoppers are reluctant to spend money on expensive new handbags or jewelry. Until there are more details on targeted stimulus measures, gains are likely to be subdued.”
——Sophie Kidlin
Bookmakers Entain and Flutter fall on reports of possible tax hikes
European gambling companies Entain and Flutter tumbled on Monday after media reports last week that the UK government may increase taxes on online casinos and bookmakers.
The Guardian on Friday report Some of these taxes could be doubled and could be imposed as soon as the UK budget is published later this month.
Entain’s share price recently fell 14.3%, and European-listed Flutter’s share price recently fell 7.6%.
——Sophie Kidlin
China’s CSI 300 index ends higher after choppy trading as investors digest stimulus package
SINGAPORE – Asia-Pacific markets were mostly higher on Monday as investors assessed China’s weekend news conference and awaited a slew of economic data from the region this week.
Mainland China’s CSI 300 index rose 1.9% to close at 3,691.3 points after choppy trading. Hong Kong’s Hang Seng Index fell 0.9% in the final hour of trading.
Australian S&P/ASX 200 Index It rose 0.47% to close at 8,252.8. The Taiwan stock market edged up 0.32% to close at 22,975.29 points.
South Korea’s blue-chip Kospi index rose more than 1% to close at 2,623.29 points, while the small-cap Kosdaq index ended almost unchanged at 770.26 points.
— Annie Bao
European markets open flat
European stocks opened mixed on Monday, with regional markets lacking direction after a tumultuous week last week.
Pan-European Stoke 600 The market opened little changed, falling 0.02% at 8:15 am London time.
Travel and leisure stocks were an outlier amid the range-bound trade, falling 1.7%.
——Sophie Kidlin
Goldman Sachs has just refreshed its global stock confidence list, giving three stocks more than 20% room for growth.
Goldman Sachs updated its list of global stock picks for October, adding some stocks and deleting some.
The stocks appear on the investment bank’s “Conviction List – Director’s Cut,” which it says provides a “curated and active” list of Buy-rated stocks.
Goldman Sachs analysts say CNBC Pro subscribers can read more about the latest additions to the list, which have upside potential of more than 20%.
— Amala Balakrishna
Goldman Sachs raises China GDP growth forecast amid stimulus measures
Goldman Sachs raised China’s 2024 real GDP forecast to 4.9% from the previous 4.7%, assessing the “more powerful and coordinated” stimulus policies launched at two high-level press conferences last week.
It said in an Oct. 13 research note that Chinese policymakers have “shifted to cyclical policy management and increased focus on the economy.”
The company attributed the increase to the Ministry of Finance saying it would use 2.3 trillion yuan ($325.48 billion) of local government special bond funds in the fourth quarter; the National Development and Reform Commission said it would pre-approval next year’s 200 billion yuan plan before the end of October.
Goldman Sachs said: “We estimate that the easing measures announced and recommended to date will be 0.4 percentage points higher than our previous forecast.” It also raised China’s 2025 real GDP growth forecast to 4.7% from 4.3%.
However, it noted that its structural view on China’s growth has not changed due to ongoing growth challenges, including deteriorating demographics, a multi-year debt deleveraging trend and global supply chain risks.
— Annie Bao
CNBC Pro: Is now the time to invest in China? Two professionals share their perspectives
After a rough start to the week, Chinese markets are back in the spotlight.
China’s blue-chip CSI 300 index soared more than 10% at the open on Tuesday on expectations of further measures to boost the economy after the Golden Week holiday. However, gains cooled after China’s National Development and Reform Commission delayed announcing any new major stimulus package, disappointing investors.
As investors consider whether and how to invest in China, two experts share their thoughts on the current market and their favorite stocks.
CNBC Pro subscribers can read more here.
— Amala Balakrishna
European Markets: Here are the opening calls
European markets are expected to open mixed on Monday.
British FTSE 100 German stocks are expected to open 12 points lower at 8,240 German DAX Index France fell 7 points to 19,351 CAC Down 12 points to 7,568 points, Italy FTSE MIB It rose 6 points to 34,144, according to IG data.
There are no major earnings or data releases on Monday.
— Holly Elliot
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