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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 +1.76%  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 +1.84% rose 0.4% to 13215.82, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +2.03% gained 0.5% to 5921.98, and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.83%  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 +1.20%  up 1.2% and Volvo /zigman2/quotes/208939564/delayed SE:VOLV.B +2.51% rising 1.6%. Miners also rose, with Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +0.41%   /zigman2/quotes/202627887/composite RIO -0.38%  up 1.2% and Glencore /zigman2/quotes/201400686/delayed UK:GLEN +1.75%  up 1.3%.

Meanwhile, the clothing and footwear sector was doing the heavy lifting for Europe, after LVMH /zigman2/quotes/201350549/delayed FR:MC +1.83%  announced a $16.2 billion deal for Tiffany /zigman2/quotes/209249105/composite TIF +0.60% , 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 +2.78%  up 1%, while shares of Swatch Group /zigman2/quotes/203516858/delayed CH:UHR +5.86% , Christian Dior /zigman2/quotes/201058228/delayed FR:CDI +1.75%  and Burberry Group /zigman2/quotes/205386705/delayed UK:BRBY -5.62% rose 1.4%.

Shares in Novartis /zigman2/quotes/203243705/composite NVS +0.33%   /zigman2/quotes/203286410/delayed CH:NOVN +1.88%  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
373.87
+6.47 +1.76%
Volume: 0.00
July 15, 2020 5:50p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,930.98
+233.62 +1.84%
Volume: 78,620
July 15, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,108.98
+101.52 +2.03%
Volume: 97,819
July 15, 2020 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,292.65
+112.90 +1.83%
Volume: 737,425
July 15, 2020 4:59p
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/zigman2/quotes/205332368/delayed
DE : Germany: Frankfurt
37.38
+0.45 +1.20%
Volume: 10,802
July 15, 2020 7:37p
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 161.40
+3.95 +2.51%
Volume: 4.43M
July 15, 2020 5:29p
P/E Ratio
10.97
Dividend Yield
0.00%
Market Cap
kr305.11 billion
Rev. per Employee
kr3.72M
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,844.50 p
+20.00 +0.41%
Volume: 2.78M
July 15, 2020 4:35p
P/E Ratio
12.68
Dividend Yield
7.24%
Market Cap
£80.95 billion
Rev. per Employee
N/A
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/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 60.61
-0.23 -0.38%
Volume: 1.61M
July 15, 2020 1:57p
P/E Ratio
12.40
Dividend Yield
6.29%
Market Cap
$101.43 billion
Rev. per Employee
$852,406
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/zigman2/quotes/201400686/delayed
UK : U.K.: London
182.72 p
+3.14 +1.75%
Volume: 36.68M
July 15, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£23.73 billion
Rev. per Employee
£1.04M
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/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
412.05
+7.40 +1.83%
Volume: 647,890
July 15, 2020 5:39p
P/E Ratio
28.96
Dividend Yield
1.16%
Market Cap
€203.64 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209249105/composite
US : U.S.: NYSE
$ 122.47
+0.73 +0.60%
Volume: 697,023
July 15, 2020 1:56p
P/E Ratio
42.23
Dividend Yield
1.89%
Market Cap
$14.77 billion
Rev. per Employee
$312,824
loading...
/zigman2/quotes/203783259/delayed
CH : Switzerland: SWX
CHF 64.34
+1.74 +2.78%
Volume: 2.28M
July 15, 2020 5:31p
P/E Ratio
35.24
Dividend Yield
1.55%
Market Cap
CHF35.38 billion
Rev. per Employee
N/A
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/zigman2/quotes/203516858/delayed
CH : Switzerland: SWX
CHF 207.80
+11.50 +5.86%
Volume: 624,835
July 15, 2020 5:31p
P/E Ratio
466.34
Dividend Yield
2.65%
Market Cap
CHF10.00 billion
Rev. per Employee
CHF228,295
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/zigman2/quotes/201058228/delayed
FR : France: Euronext Paris
395.00
+6.80 +1.75%
Volume: 6,497
July 15, 2020 5:35p
P/E Ratio
24.26
Dividend Yield
1.22%
Market Cap
€70.04 billion
Rev. per Employee
€322,389
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/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,470.00 p
-87.50 -5.62%
Volume: 3.16M
July 15, 2020 4:35p
P/E Ratio
50.09
Dividend Yield
0.77%
Market Cap
£6.28 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203243705/composite
US : U.S.: NYSE
$ 87.76
+0.29 +0.33%
Volume: 859,415
July 15, 2020 1:58p
P/E Ratio
17.38
Dividend Yield
2.28%
Market Cap
$191.36 billion
Rev. per Employee
$415,614
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/zigman2/quotes/203286410/delayed
CH : Switzerland: SWX
CHF 83.03
+1.53 +1.88%
Volume: 5.46M
July 15, 2020 5:31p
P/E Ratio
15.96
Dividend Yield
3.55%
Market Cap
CHF179.68 billion
Rev. per Employee
CHF405,818
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Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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