Luxury Stocks Drag STOXX 600 Amid Global Trade Woes

The STOXX 600 index fell 0.5% as luxury stocks declined due to weak Chinese trade data. France's CAC 40 led declines, and UK's FTSE 100 dropped amid local company shifts. Investors anticipate ECB's interest rate decision and its potential impact on market dynamics.

The STOXX 600 index closed lower, breaking its eight-session winning streak as luxury stocks led declines amid disappointing trade data from China. Investors eagerly await the European Central Bank's policy decision later this week.

On Tuesday, the pan-European index dipped by 0.5%, with France's CAC 40 taking a 1.1% hit, marking it as the biggest faller among Europe's major economies. The drop followed news of a sharp slowdown in China's exports and an unexpected contraction in imports in November, raising concerns about the global economy.

Luxury brands heavily reliant on Chinese markets, including LVMH and Kering, saw their shares drop, pulling the broader luxury index down 1.6%. Meanwhile, UK's FTSE 100 index fell 0.8%, affected by Ashtead's 14% slump upon its announcement of shifting its primary listing to the U.S. amid missed profit expectations.

(With inputs from agencies.)