European luxury equities dip 30%

European luxury equities dip 30%

An all-out trade conflict could provoke a 30% dip in equities of EU makers of luxury products, as UBS informed.

Such a sag would occur in a worst-case scenario, which would include a 1% sink in gross domestic product surge worldwide, and a double-digit reduction in per-share profits in the sector. Apparently, the outlook showed up as luxury equities are currently trading at a premium, dropping a hint that market participants haven’t mostly priced in trade-related hazards.

China and America are still locked in a trade conflict.  Donald Trump recently threatened to slap duties on all products imported from China that could amount to about $500 billion. China and America appear to be major markets for luxury products because they account for approximately 55% of sales.

There’s a 10% ascend in organic sales of luxury products now, with 35% of transactions in China. Some market experts are assured that in a worst-case trade conflict scenario, surge in organic sales would speed down to nearly 2% next year and per-share profits would sink about 12%. Additionally, global GDP surge would be cut from 4% to 3%, while global equity markets would sink by more than 20%.

The equities of European luxury companies generally dived nearly 24% in 2018.

The equities of Swiss watch maker Swatch Group AG UHR headed south 0.62%. As for UK clothing and accessories maker Burberry Group PLC BRBY, it rallied up to 0.57%, while Italian shoes and handbags and designer Salvatore Ferragamo SpA SFER lost 0.98%.

Meanwhile, Swatch boasts 70% of sales in the wholesale market. The given fact provokes greater volatility from restocking/destocking cycles.

In addition to this, forecasts as for such brands as Ferragamo and Burberry are high because market participants foresee further sales surge as well as margin expansion.


Apple event surprised traders
Apple event surprised traders

Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.

Latest news

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

USD Gains Momentum
USD Gains Momentum

The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera