Luxury Goods Lifts European Markets

European stock markets rose on Thursday due to strong performance in luxury stocks and China's relaxation of pandemic-related restrictions. The STOXX 600, a pan-European benchmark, increased by 0.5%, mainly driven by luxury sector gains. LVMH, Europe's largest company by market capitalization, saw a 2% rise. France's CAC 40, known for its luxury names, outperformed with a 0.9% increase, while Germany's DAX and Britain's FTSE 100 saw gains of 0.5% and marginal changes, respectively. Asian stocks remained close to a two-week low due to concerns about China's deflation and the U.S. ban on investments in sensitive Chinese technologies. The broader Asia-Pacific shares index experienced little change and seemed set for a second week of losses. Chinese economic data showed consumer price deflation and continued drops in factory-gate prices, raising concerns about the post-pandemic recovery.