Shares in European luxury hover between gains and loss as market digests LVMH earnings
BUZZ-Shares in European luxury hover between gains and loss as market digests LVMH earnings ** European luxury stocks opened sharply higher on Tuesday after LVMH's quarterly results, but most gains faded by mid-morning as investors took a more cautious view
** Spirits makers Pernod Ricard PERP.PA and Diageo DGE.L remain among the strongest performers, up 2%-3%, while Remy Cointreau RCOP.PA pares an early gain of nearly 4% to trade up about 0.8% at 08:41 GMT
** Kering PRTP.PA shares rise around 2.4%, while Hermes HRMs.PA turns flat after gaining as much as 2.8% and briefly slipping into negative territory
** "Today's update is unlikely to meaningfully reignite interest in the broader space (but it) could lead to renewed attempts to call the bottom as we approach year-ends", Jefferies says
** Nonetheless, the broker adds it does see encouraging momentum in Asia and Japan for LVMH, which the broker says acts as a proxy for global beauty
** TD Cowen says the Americas are "the clear bright spot" for LVMH, adding that trends improved across several key regions
** J.P. Morgan saw "slightly better results" at LVMH, but noted that earnings across the luxury sector have so far shown "very mixed trends and very company/brand/category specific dynamics"
** The broker added that the main positive from the results was strong margin performance across the LVMH's businesses
** Year-to-date, the index of Europe's ten largest fashion businesses .STXLUXP has lost around 14%
(Reporting by Jakob Van Calster)