Corrected: BUZZ-European luxury slides as Middle East conflict escalation dampens global risk sentiment

Swatch groupAG

02/03/2026 08:33

Corrects to remove erroneously mentioned stock from 2nd bullet

** Shares in the European luxury sector fall after U.S. and Israeli strikes on Iran, with the European luxury index .STXLUXP tumbling close to 2%

** French companies LVMH LVMH.PA, Hermes HRMS.PA, Kering PRTP.PA slide between 4%-5%

** Swiss Richemont CFR.S and Swatch UHR.S; Italian Moncler MONC.MI, Ferragamo SFER.MI and Cucinelli BCU.MI all fall about 4%

** Before the bell, traders pointed to the sector as a relative underperformer on global risk sentiment, lower travel, flight to safety

** A sharp military escalation in the Middle East creates a highly uncertain environment for global luxury sector, brokerage Vontobel says

** The key issue at this point is that neither the length nor the scope of the conflict can be predicted, making any attempt to quantify its impact highly uncertain, Vontobel adds

 (Reporting by Amir Orusov)

 ((Amir.orusov@thomsonreuters.com))