European luxury stocks rise, HSBC upgrades LVMH and Kering to buy.

The Goldman Sachs luxury goods stock basket index rose 2.4% at one point. Prior to this, HSBC raised ratings for luxury industry heavyweight stocks such as LVMH and Kering from hold to buy, citing expectations of a recovery in Chinese consumer spending. Analysts led by Erwan Rambourg expect a slight rebound in sales for the remaining of the year and in 2026, and anticipate a return to a trajectory of steady profit growth. LVMH's stock price rose 3.8% at one point, reaching its highest level since May, with analysts optimistic about opportunities to streamline cost structures and increase long-term profit margins. Kering's stock price rose as much as 4.6%, hitting a new high since March, with analysts believing that the new CEO, Luca de Meo, may bring low risks of transformation.