Luxury stocks buoy European shares before U.S.-China trade talks resume

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 9, 2019. REUTERS/Staff/File Photo

(Reuters) – Advances in luxury goods makers led European shares slightly higher on Thursday, but nervousness lingered after conflicting headlines were reported on Sino-U.S. trade progress ahead of the top-level negotiations.

The pan-European STOXX 600 index was up 0.1% at 0706 GMT, with France’s CAC 40 .FCHI rising 0.4% to lead the charge.

French stocks were boosted by a near 5% jump in shares of LVMH (LVMH.PA), after the Louis Vuitton owner beat sales forecasts for the third quarter.

Shares of rivals Gucci-owner Kering (PRTP.PA), Burberry (BRBY.L), Christian Dior (DIOR.PA) and Moncler (MONC.MI) climbed between 1.1% and 4.6%.

Minister-level trade talks between the world’s top two economies are set to resume on Thursday. Both sides are attempting to end a 15-month trade war that has hurt global growth and dented business confidence.

Markets have been particularly volatile this week due to the back and forth in trade related news. A latest report suggested that the two-day negotiations could be cut short by a day, dampening hopes of progress.

Meanwhile, Germany’s export-reliant DAX .GDAXI lagged its peers, down 0.1% as the fallout from the trade war continued to be manifested in dour economic data.

The latest report from Germany showed exports fell by more than expected in August, reinforcing expectations that a manufacturing slump is pushing Europe’s largest economy into recession.

Reporting by Medha Singh in Bengaluru; Editing by Bernard Orr