LVMH Plummets European Stock Market
LVMH, the luxury giant, reported a 14% drop in its 1H2024 profit, disappointing analysts and dragging down the luxury sector. This caused the Cac 40, the French stock market's benchmark index, to lose more than 1%, led by LVMH's drop of more than 6%. Other luxury giants such as Kering, Hermès, Pernod Ricard and L'Oréal also suffered losses.
This weakness in the luxury sector impacts the EuroStoxx 50, which could drop to 4,600 points, and the Ibex 35, which could fall to 10,500 points. European stock markets, after a good first half of the year, are now facing a significant correction. According to analysts, the Cac 40 failed to hold its key supports, which could lead to further falls in European markets, extending the current consolidation phase and affecting other major indices.
Looking at the chart, the EuroStoxx50 has developed a sideways movement from March 27 to July 15 where the European and US political situation has been reflected in a correction that on July 23 consolidated again with an inverted hammer figure. The checkpoint zone (POC) is located in the 4,988 zone while the current price is located in the 4,782 zone in the direction of the low of 4,542 points. It would not be unusual to see a fall that will correct the price of the European spread until the beginning of September and then return to the control zone.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
This weakness in the luxury sector impacts the EuroStoxx 50, which could drop to 4,600 points, and the Ibex 35, which could fall to 10,500 points. European stock markets, after a good first half of the year, are now facing a significant correction. According to analysts, the Cac 40 failed to hold its key supports, which could lead to further falls in European markets, extending the current consolidation phase and affecting other major indices.
Looking at the chart, the EuroStoxx50 has developed a sideways movement from March 27 to July 15 where the European and US political situation has been reflected in a correction that on July 23 consolidated again with an inverted hammer figure. The checkpoint zone (POC) is located in the 4,988 zone while the current price is located in the 4,782 zone in the direction of the low of 4,542 points. It would not be unusual to see a fall that will correct the price of the European spread until the beginning of September and then return to the control zone.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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