Luxury Stocks Losing Shine as Euro Strength Hits Tourists
- Index tracking European luxury stocks up 40% in last 12 months
- Euro strength may hurt tourist spending in Europe: analysts
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The euro’s strong run since the start of the year may dent a recovery in the European luxury industry, which has been led by a rebound in Chinese consumer spending, according to analysts at RBC Capital Markets and HSBC Holdings Plc.
The single currency has gained about 12 percent versus the dollar in 2017, a shift that brings uncertainty over tourist flows to Europe in coming quarters, said RBC analyst Rogerio Fujimori. The impact is partially offset by the resilience of the yuan, which is crucial for Chinese tourists’ buying power overseas, Fujimori wrote in an Aug. 11 note.