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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 +1.18%  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 +1.50% rose 0.4% to 13215.82, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +1.11% gained 0.5% to 5921.98, and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.59%  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 -0.17%  up 1.2% and Volvo /zigman2/quotes/208939564/delayed SE:VOLV.B +1.84% rising 1.6%. Miners also rose, with Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +1.02%   /zigman2/quotes/202627887/composite RIO -2.63%  up 1.2% and Glencore /zigman2/quotes/201400686/delayed UK:GLEN +1.97%  up 1.3%.

Meanwhile, the clothing and footwear sector was doing the heavy lifting for Europe, after LVMH /zigman2/quotes/201350549/delayed FR:MC +1.53%  announced a $16.2 billion deal for Tiffany /zigman2/quotes/209249105/composite TIF +0.12% , 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 +1.50%  up 1%, while shares of Swatch Group /zigman2/quotes/203516858/delayed CH:UHR +0.62% , Christian Dior /zigman2/quotes/201058228/delayed FR:CDI +1.03%  and Burberry Group /zigman2/quotes/205386705/delayed UK:BRBY +1.72% rose 1.4%.

Shares in Novartis /zigman2/quotes/203243705/composite NVS -0.30%   /zigman2/quotes/203286410/delayed CH:NOVN +0.41%  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
424.99
+4.96 +1.18%
Volume: 0.00
Jan. 24, 2020 2:47p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,588.98
+200.56 +1.50%
Volume: 44,447
Jan. 24, 2020 2:47p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,037.80
+66.01 +1.11%
Volume: 36,344
Jan. 24, 2020 2:47p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,626.88
+119.21 +1.59%
Volume: 244,172
Jan. 24, 2020 1:47p
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/zigman2/quotes/205332368/delayed
DE : Germany: Frankfurt
44.51
-0.08 -0.17%
Volume: 12,297
Jan. 24, 2020 2:43p
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 158.05
+2.85 +1.84%
Volume: 1.44M
Jan. 24, 2020 2:47p
P/E Ratio
10.12
Dividend Yield
3.16%
Market Cap
kr315.51 billion
Rev. per Employee
kr3.72M
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,471.00 p
+45.00 +1.02%
Volume: 931,483
Jan. 24, 2020 1:47p
P/E Ratio
7.34
Dividend Yield
6.91%
Market Cap
£71.87 billion
Rev. per Employee
N/A
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/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 58.91
-1.59 -2.63%
Volume: 2.69M
Jan. 23, 2020 6:30p
P/E Ratio
7.48
Dividend Yield
5.62%
Market Cap
$74.20 billion
Rev. per Employee
$852,406
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/zigman2/quotes/201400686/delayed
UK : U.K.: London
232.65 p
+4.50 +1.97%
Volume: 10.76M
Jan. 24, 2020 1:47p
P/E Ratio
48.47
Dividend Yield
6.55%
Market Cap
£30.10 billion
Rev. per Employee
£1.04M
loading...
/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
418.25
+6.30 +1.53%
Volume: 260,156
Jan. 24, 2020 2:46p
P/E Ratio
31.83
Dividend Yield
1.48%
Market Cap
€207.36 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209249105/composite
US : U.S.: NYSE
$ 134.21
+0.16 +0.12%
Volume: 1.26M
Jan. 23, 2020 6:30p
P/E Ratio
30.03
Dividend Yield
1.73%
Market Cap
$16.10 billion
Rev. per Employee
$312,824
loading...
/zigman2/quotes/203783259/delayed
CH : Switzerland: SWX
CHF 76.02
+1.12 +1.50%
Volume: 874,358
Jan. 24, 2020 2:46p
P/E Ratio
27.46
Dividend Yield
2.63%
Market Cap
CHF42.32 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203516858/delayed
CH : Switzerland: SWX
CHF 261.10
+1.60 +0.62%
Volume: 135,532
Jan. 24, 2020 2:46p
P/E Ratio
17.14
Dividend Yield
3.06%
Market Cap
CHF12.52 billion
Rev. per Employee
CHF228,295
loading...
/zigman2/quotes/201058228/delayed
FR : France: Euronext Paris
453.20
+4.60 +1.03%
Volume: 8,466
Jan. 24, 2020 2:46p
P/E Ratio
30.45
Dividend Yield
1.37%
Market Cap
€80.90 billion
Rev. per Employee
€322,389
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
2,130.00 p
+36.00 +1.72%
Volume: 506,799
Jan. 24, 2020 1:47p
P/E Ratio
24.61
Dividend Yield
2.01%
Market Cap
£8.49 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203243705/composite
US : U.S.: NYSE
$ 94.92
-0.29 -0.30%
Volume: 318.00
Jan. 23, 2020 6:30p
P/E Ratio
18.71
Dividend Yield
1.94%
Market Cap
$217.17 billion
Rev. per Employee
$415,614
loading...
/zigman2/quotes/203286410/delayed
CH : Switzerland: SWX
CHF 92.20
+0.38 +0.41%
Volume: 2.82M
Jan. 24, 2020 2:47p
P/E Ratio
18.22
Dividend Yield
3.09%
Market Cap
CHF210.08 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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