European luxury stocks fell to their lowest level since 2022, affected by escalating demand concerns.

The impact of the Middle East conflict on oil prices has intensified concerns in the market about inflation, interest rates, as well as the prospects for the tourism industry and discretionary consumer spending. The recent decline in European luxury goods stocks worsened on Thursday. The luxury goods basket index tracked by Goldman Sachs fell by 3.8%, reaching its lowest level since October 2022. Hermes led the decline, falling by 5.8%, marking the largest single-day drop since April 2025; the company's closing price reached a new low since October 2023. As for other luxury goods stocks, LVMH fell by 1.8%, Kering Group fell by 4.6%, and Richemont fell by 4.5%. Rising energy costs have raised concerns about squeezed real incomes and a slowdown in tourist traffic.