European equities closed modestly lower on Thursday, weighed down by sharp losses in high-end retailers and persistent macroeconomic headwinds. The Euro STOXX 50 slipped 0.2% to 6,432, while the STOXX Europe 600 edged just below the flatline to 651.
Luxury stocks led the decline amid growing pessimism over demand from key consumer markets. In China, the world’s largest luxury buyer, July retail sales came in weaker than expected, dampening sentiment. In the US, the outlook for discretionary spending was hit by a rebound in Treasury yields, a softer dollar, and mounting inflation risks.
LVMH and Adidas each fell 3%, and Hermès declined 2%. Among industrial names, Airbus, Safran, and Rheinmetall lost around 2%, dragging on the broader sector.
In contrast, Intesa Sanpaolo rose 0.4% after Banca MPS approved bids for BPM and Banca Generali, moves seen as an effort to stave off Intesa’s takeover attempt.
