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Luxury stocks fell across the board on Wednesday; analysts are pessimistic about the outlook for the affordable luxury sector
Analysts at Berenberg Bank noted in a report that as consumer purchasing power declines, "affordable luxury" stocks such as Kering and Swatch may face difficulties. The analysts wrote that what will hold consumers back is “ability to spend” rather than “willingness to spend,” and that the fate of U.S. luxury buyers is closely tied to the health of the U.S. stock market. On Wednesday, European luxury stocks fell across the board, with Kering down 4.3%, Moncler down 3.8%, and Burberry down 3.45%.
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