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

Canada Goose Holdings

26/09/2024 12:07

** Shares of U.S. beauty and luxury companies rise premarket
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 4.1%, Tapestry  TPR.N  rises
2.3%, Ralph Lauren  RL.N  up 3%, and U.S.-listed shares of
Canada Goose  GOOS.TO  jumps 4% before the bell 
    ** 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))