Berliner Tageblatt - Dow ends at record as luxury share weakness hits European bourses

NYSE - LSE
NGG -1.35% 65.12 $
RELX -0.52% 47.91 $
RBGPF 100% 62.35 $
SCS -3.11% 12.21 $
RYCEF 0.55% 7.25 $
BCC -5.3% 131.64 $
CMSC -0.65% 24.57 $
CMSD -0.16% 24.84 $
RIO 0.6% 66.58 $
VOD -2.8% 9.28 $
BCE -0.71% 32.46 $
BTI -1.31% 34.46 $
JRI -0.69% 12.98 $
GSK 0.76% 38.17 $
AZN -1.05% 75.22 $
BP -5.76% 29.36 $
Dow ends at record as luxury share weakness hits European bourses
Dow ends at record as luxury share weakness hits European bourses / Photo: © AFP/File

Dow ends at record as luxury share weakness hits European bourses

The Dow finished at a record Monday as markets weighed the impact of the failed assassination attempt on Donald Trump, while European bourses came under pressure from weakness in the luxury sector and disappointing Chinese economic data.

Text size:

The blue-chip index piled on 0.5 percent to finish at 40,211.72, notching its first record since mid-May.

Major US indices were in positive territory the entire session amid talk that the assassination attempt boosted Trump's prospects in the election.

Trump was hit in the ear but not seriously injured in a gun attack during a campaign event on Saturday in Pennsylvania ahead of the Republican National Convention in Wisconsin.

The former president announced Monday that Ohio Senator J.D. Vance will be his vice presidential nominee.

"The connection for the market is that former President Trump is seen by many to be a more market-friendly candidate due in part to his push for deregulation and a lower corporate tax rate," O'Hare said.

"Still, others worry that his push to increase tariffs could also lead to higher inflation."

The Dow record came as Fed Chair Jerome Powell expressed confidence that inflation is in retreat, reiterating a stance that boosted markets last week.

Strong results from Goldman Sachs and BlackRock also boosted sentiment on Wall Street.

Earlier the Paris bourse fell 1.2 percent following a bruising day for luxury equities, with LVMH, Hermes and Kering all declining.

Burberry stock tumbled more than 16 percent in London after it announced the immediate departure of chief executive Jonathan Akeroyd as it posted "disappointing" results.

Another heavy blow came as Swatch reported plunging profits owing to the luxury market crisis in China and warned that sales in the key market were likely to remain difficult this year, sending its shares down more than nine percent.

Official statistics showed the Chinese economy grew by 4.7 percent in the second quarter of the year, the slowest rate of expansion since early 2023, when China was emerging from a crippling zero-Covid policy that strangled growth.

The figures came the same day that China's ruling Communist Party kicked off a key meeting led by President Xi Jinping focused on the economy, known as the Third Plenum.

The world's second-largest economy is grappling with a real estate debt crisis, weakening consumption, and an ageing population.

Analysts are hoping the gathering spawns badly needed support for the economy.

- Key figures around 2030 GMT -

New York - Dow: UP 0.5 percent at 40,211.72 (close)

New York - S&P 500: UP 0.3 percent at 5,631.22 (close)

New York - Nasdaq Composite: UP 0.4 percent at 18,472.57 (close)

London - FTSE 100: DOWN 0.9 percent at 8,182.96 (close)

Paris - CAC 40: DOWN 1.2 percent at 7,632.71 (close)

Frankfurt - DAX: DOWN 0.8 percent at 18,590.89 (close)

EURO STOXX 50: DOWN 1.2 percent at 4,983.11 (close)

Hong Kong - Hang Seng Index: DOWN 1.5 percent at 18,015.94 (close)

Shanghai - Composite: UP 0.1 percent at 2,974.01 (close)

Tokyo - Nikkei 225: Closed for a holiday

Dollar/yen: UP at 158.09 yen from 157.83 yen on Friday

Euro/dollar: DOWN at $1.0902 from $1.0907

Pound/dollar: DOWN at $1.2970 from $1.2988

Euro/pound: UP at 84.03 pence from 83.97 pence

Brent North Sea Crude: DOWN 0.2 percent at $84.85 per barrel

West Texas Intermediate: DOWN 0.4 percent at $81.91 per barrel

burs-jmb/dw

A.Gasser--BTB