European Stocks Drop on Lack of Stimulus Details

(Reuters) – European stocks dropped to two-week lows on Tuesday as the lack of fresh details over China's stimulus measures sparked a selloff in sectors linked to the world's second-largest economy, such as mining and luxury.

The pan-European STOXX 600 index was down nearly 1%, as of 0714 GMT, touching its lowest levels since Sept. 23.

Luxury firms such as LVMH, Kering (EPA:PRTP), Burberry, and Hermes, which draw a large part of their revenue from China, fell in the range of 3.1% to 5%.

Spirits makers Remy Cointreau and Pernod Ricard (EPA:PERP) dropped 5% and 2.8%, respectively, as China announced provisional anti-dumping measures on brandy imports from the European Union.

Miners fell the most among European sectors, down 3.7%, as copper and iron ore prices dropped after initial optimism over top consumer China's stimulus measures faded.

China's runaway stocks rally began losing steam on Tuesday, and Hong Kong shares slumped. Officials disappointed markets by providing few specific details on plans to bolster the country's slowing economy.

Among single stocks, Vistry plunged about 30% after the British homebuilder cut its fiscal 2024 profit outlook by 80 million pounds ($104.7 million), hurt by increased build costs in one of its divisions.