Major Daily Loss Hits European Stocks
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European shares have recorded their biggest daily drop in a month with mining, luxury goods, and travel and leisure stocks falling.
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Stocks of luxury goods harmed by Chinese attempt to redistribute wealth
European shares fell on Thursday, recording the biggest daily loss in a month, as lower commodity prices pushed mining stocks lower, while luxury goods stocks were affected by a Chinese attempt to redistribute wealth.
The European "Stoxx 600" index fell 1.6% to its lowest level in two weeks, while shares of mining companies fell 4.2%, recording the largest one-day decline since last March.
Shares of luxury goods companies with significant exposure to China's economy, such as LVMH, Kering, and Richemont, fell between 5.8% and 9.2% due to Beijing's plans to target excessive corporate profits and wealth inequality.
Bank shares, including HSBC that focuses on Asia, Spain's BBBVA, and France's BNP Paribas, fell about 3% each.
The travel and leisure index fell 2.5% as a rise in infections with the mutated Delta strain of the Coronavirus reinforced fears of slowing global growth.
It is worth noting that utility stocks are considered a safe bet in a time of economic uncertainty.
