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Nov. 25, 2019, 5:22 a.m. EST

Luxury goods makers lead gains in Europe after LVMH announces Tiffany deal

Trade optimism also drives gains at the start of the week for Europe

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By Barbara Kollmeyer, MarketWatch


AFP via Getty Images
Models outside the entrance to the Wall Street store of Tiffany & Co (Photo: TIMOTHY A. CLARY/AFP via Getty Images)

European stock markets traded higher on Monday amid perceived positive steps on U.S.-China trade negotiations, and with deal news boosting the luxury goods sector after LVMH Moët Hennessy — Louis Vuitton said it would acquire Tiffany & Co.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.08%  rose 0.7% to 407.40, after gaining 0.4% on Friday, but breaking a six-week winning streak with a weekly loss of 0.5%.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.02% rose 0.4% to 13215.82, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.23% gained 0.5% to 5921.98, and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.64%  was up 0.6% to 7370.45.

U.S. stock futures rose after equities closed higher on Friday, though major indexes halted a string of multi-week gains. Investors stayed focused on trade issues in a holiday-shortened week; U.S. markets will close on Thursday for Thanksgiving Day.

In what could be an important step forward for trade, Beijing said on Sunday that it will increase penalties for intellectual property violations, a topic that has been a key sticking point for trade negotiations with the U.S. Investors were also eyeing a tweet from the Global Times — run by China’s ruling Communist Party — that said Beijing and Washington are “very close” to an initial trade deal.

Europe was also playing catch-up after President Donald Trump said on Friday that there was a “good chance to make a deal.”

The positive vibes on trade fed through to auto stocks, with Daimler /zigman2/quotes/205332368/delayed DE:DAI -0.90%  up 1.2% and Volvo /zigman2/quotes/208939564/delayed SE:VOLV.B -1.23% rising 1.6%. Miners also rose, with Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO -2.66%   /zigman2/quotes/202627887/composite RIO -2.03%  up 1.2% and Glencore /zigman2/quotes/201400686/delayed UK:GLEN +1.61%  up 1.3%.

Meanwhile, the clothing and footwear sector was doing the heavy lifting for Europe, after LVMH /zigman2/quotes/201350549/delayed FR:MC -0.13%  announced a $16.2 billion deal for Tiffany /zigman2/quotes/209249105/composite TIF +0.05% , ending weeks of speculation. Shares of LVMH climbed 1.8%.

That news triggered gains across the luxury goods sector, with LVMH rival Compagnie Financière Richemont /zigman2/quotes/203783259/delayed CH:CFR -0.61%  up 1%, while shares of Swatch Group /zigman2/quotes/203516858/delayed CH:UHR -0.72% , Christian Dior /zigman2/quotes/201058228/delayed FR:CDI +0.61%  and Burberry Group /zigman2/quotes/205386705/delayed UK:BRBY +1.48% rose 1.4%.

Shares in Novartis /zigman2/quotes/203243705/composite NVS +1.00%   /zigman2/quotes/203286410/delayed CH:NOVN +0.88%  slipped 0.3% after news the Swiss pharmaceutical group has reached a $9.7 billion deal for U.S.-based The Medicines Company . Novartis will pay $85 per share for the New Jersey-based biotech.

/zigman2/quotes/210599654/delayed
XX : STOXX
392.09
-0.30 -0.08%
Volume: 0.00
Nov. 25, 2020 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,289.80
-2.64 -0.02%
Volume: 76,832
Nov. 25, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,571.29
+12.87 +0.23%
Volume: 113,619
Nov. 25, 2020 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,391.09
-41.08 -0.64%
Volume: 1.08M
Nov. 25, 2020 4:59p
loading...
/zigman2/quotes/205332368/delayed
DE : Germany: Frankfurt
57.42
-0.52 -0.90%
Volume: 22,820
Nov. 25, 2020 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€560,333
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/zigman2/quotes/208939564/delayed
SE : Sweden: Stockholm
kr 200.80
-2.50 -1.23%
Volume: 4.42M
Nov. 25, 2020 5:29p
P/E Ratio
24.34
Dividend Yield
0.00%
Market Cap
kr413.27 billion
Rev. per Employee
kr4.15M
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,918.50 p
-134.50 -2.66%
Volume: 3.00M
Nov. 25, 2020 4:35p
P/E Ratio
14.05
Dividend Yield
6.04%
Market Cap
£83.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 66.28
-1.37 -2.03%
Volume: 2.92M
Nov. 25, 2020 7:00p
P/E Ratio
14.99
Dividend Yield
5.82%
Market Cap
$112.13 billion
Rev. per Employee
$852,406
loading...
/zigman2/quotes/201400686/delayed
UK : U.K.: London
215.00 p
+3.40 +1.61%
Volume: 40.89M
Nov. 25, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£28.19 billion
Rev. per Employee
£1.04M
loading...
/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
494.20
-0.65 -0.13%
Volume: 544,696
Nov. 25, 2020 5:38p
P/E Ratio
56.26
Dividend Yield
0.93%
Market Cap
€249.09 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209249105/composite
US : U.S.: NYSE
$ 131.58
+0.07 +0.05%
Volume: 2.43M
Nov. 25, 2020 7:00p
P/E Ratio
55.59
Dividend Yield
1.76%
Market Cap
$15.97 billion
Rev. per Employee
$313,759
loading...
/zigman2/quotes/203783259/delayed
CH : Switzerland: SWX
CHF 77.78
-0.48 -0.61%
Volume: 2.08M
Nov. 25, 2020 5:30p
P/E Ratio
184.23
Dividend Yield
1.29%
Market Cap
CHF44.23 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203516858/delayed
CH : Switzerland: SWX
CHF 234.00
-1.70 -0.72%
Volume: 160,126
Nov. 25, 2020 5:30p
P/E Ratio
514.17
Dividend Yield
2.35%
Market Cap
CHF12.03 billion
Rev. per Employee
CHF228,408
loading...
/zigman2/quotes/201058228/delayed
FR : France: Euronext Paris
432.00
+2.60 +0.61%
Volume: 4,077
Nov. 25, 2020 5:35p
P/E Ratio
42.74
Dividend Yield
1.06%
Market Cap
€77.47 billion
Rev. per Employee
€328,641
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,709.50 p
+25.00 +1.48%
Volume: 1.32M
Nov. 25, 2020 4:35p
P/E Ratio
335.85
Dividend Yield
0.00%
Market Cap
£6.80 billion
Rev. per Employee
£250,748
loading...
/zigman2/quotes/203243705/composite
US : U.S.: NYSE
$ 89.18
+0.88 +1.00%
Volume: 2.03M
Nov. 25, 2020 7:00p
P/E Ratio
28.68
Dividend Yield
2.25%
Market Cap
$194.06 billion
Rev. per Employee
$457,559
loading...
/zigman2/quotes/203286410/delayed
CH : Switzerland: SWX
CHF 80.98
+0.71 +0.88%
Volume: 7.34M
Nov. 25, 2020 5:30p
P/E Ratio
27.37
Dividend Yield
3.64%
Market Cap
CHF176.97 billion
Rev. per Employee
CHF454,248
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Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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