U.S. beauty, luxury cos jump as China boosts stimulus efforts

Canada Goose Holdings

26/09/2024 15:06

(Updates)
    ** Shares of U.S. beauty and luxury companies jump as China
steps up efforts to stabilize its economy with fresh stimulus
    ** Chinese leaders pledged to deploy "necessary fiscal
spending" to meet this year's economic growth target of roughly
5% 
    ** Estee Lauder  EL.N  stock up 8.8% and is set for best day
since February 
        ** Tapestry  TPR.N  shares rise 3%, Ralph Lauren  RL.N 
up 3.7%, and U.S.-listed shares of Canada Goose  GOOS.TO  jumps
6.4%
    ** Cos have a strong presence in China and have reported
weak demand for products in the region due to a frail
post-pandemic recovery as the country faces strong deflationary
pressures from sharp property market downturn and weak consumer
confidence
    ** China also plans to issue special sovereign bonds worth
about 2 trln yuan ($285.23 bln) this year as part of fresh
fiscal stimulus
    ** YTD, EL stock down ~37%, TPR up 24%, RL up ~31%, and GOOS
down nearly 9% as of last close

($1 = 7.0120 Chinese yuan renminbi)

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))