A Chinese strike on luxury goods affects the performance of European equities

European equity markets fell Monday after weaker-than-expected growth data in China hurt luxury goods stocks while commodity prices jumped sharply prime it has fueled concerns that inflation may get out of control.

The pan-European Stoxx 600 index closed the trading session in 0.5% decline after an optimistic start to the corporate quarterly earnings season on Friday led to By recording her performance strongest weekly since March.

The drop in the benchmark came after three consecutive earnings sessions, in which jumped 2.7%.

Global equity markets fell after data showed that the Chinese economy grew at the slowest pace of the year in the third quarter, hit by electricity shortages, supply chain bottlenecks and severe problems in the housing market.

Shares of luxury goods companies exposed to China, including (LVMH), Kering and Hermes, fell between 1.4% and 2.4%, also penalized by Chinese President Xi Jinping’s request to extend the consumption tax.

But analysts expect European companies to report a 47% increase in third-quarter profits, according to Refinitiv IBES data. These numbers have been revised up in recent days, helping the Stoxx 600 index move towards its August peak.

On the London Stock Exchange, the FTSE 100 index fell from its highest levels in nearly eight months as investors bet the Bank of England expects two consecutive interest rate hikes in November and December and more hikes next year.

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