European Stock Market Dips Despite Luxury Stocks Surge

Europe's main stock index declined by 0.3% on Friday after a streak of four successive gains. Luxury stocks, such as Hermes, performed well due to earnings boosts. The benchmark STOXX 600 managed its longest weekly gain streak since 2024. Goldman Sachs sees robust market conditions ahead.

The European stock market closed lower on Friday, ending its streak of gains over the past four sessions. This decline came as investors took a breather from the market's recent high levels, despite a boost from luxury stocks, most notably Hermes, LVMH, and Kering.

The STOXX 600 index's eighth consecutive weekly increase marks its longest winning streak since early 2024, with a yearly increase of over 8%. Investors have remained optimistic due to strong corporate earnings in Europe. Goldman Sachs has raised its STOXX 600 outlook based on lower risk premiums and improved economic indicators.

Luxury goods were among the top gainers, buoyed by Hermes's 18% increase in quarterly sales. Meanwhile, uncertainty over U.S. tariffs looms, with President Trump initiating investigations into trade duties. The European Commission has pledged to respond decisively if tariffs are imposed, posing potential challenges for luxury and automotive sectors in Europe.

(With inputs from agencies.)