Luxury stocks rise as Middle East peace hopes improve spending outlook

Swatch groupAG

07/05/2026 12:29

** Shares in European luxury goods companies are rising sharply for a second day, as hopes for peace in the Middle East grow, improving the outlook for travel and high-end spending

** Hermes HRMS.PA, Kering PRTP.PA, LVMH LVMH.PA, Richemont CFR.S, Moncler MONC.MI and Burberry BRBY.L are up between 1.7% and 3.1%, with Swatch UHR.S jumping more than 7%, on track for its best day since January

** "The market is trying to price in a probable end of the Third Gulf War," says Bernstein analyst Luca Solca, adding it may also benefit from a lower probability of a global recession

** The STOXX Luxury 10 .STXLUXP has lost as much as 17% since the Iran conflict began, hitting a more than four-year low in March, as risk sentiment soured and global travel fell

** The index is up around 1.6%, adding to a nearly 5% surge the day before. The broader STOXX 600 .STOXX is down 0.3%

 (Reporting by Clement Martinot)

 ((Clement.Martinot@thomsonreuters.com;))