Institution: Middle East situation expected to cool down, attractiveness of luxury goods sector enhanced.

Piral Dadhania, an analyst at Gao Huang Capital Markets, stated that as tensions in the Middle East may cool down in the coming weeks, luxury stocks appear more attractive. In a research report, the analyst wrote that during the first quarter earnings season, the market's focus will be on the impact of the war, which could be a swing factor including the impact on foot traffic and broader consumer sentiment. The analyst suggested that, given that LVMH has limited exposure to risks in the Middle East, the company may be a short-term winner and added that Brunello Cucinelli may also only experience minor impacts.