By Dhirendra Tripathi
Investing.com – Stocks of European retailers such as LVMH (PA: LVMH ), Kering (PA: PRTP ), H&M (ST: HMb ), Moncler (MI: MONC ) and Hermès (PA: HRMS ) were all down around 4% Tuesday after the European Union banned exports of luxury goods to Russia.
The ban covers luxury goods worth more than 300 euros ($329.58) and cars costing over 50,000 euros, according to reports. It follows a similar move by the U.S. on Friday.
The new list is part of the fourth set of sanctions brought by the EU against Russia for its invasion of Ukraine. Previously sanctioned items include steel, iron ore, and electronic gadgets.
While Russia is a big market for many of the luxury goods makers, the fear is that China may also get dragged into the sanctions net.
China is one of the biggest makers of these luxury goods, and a key supplier of raw materials that go into making them. The world’s second-largest economy is also a big market for these items.
The bloc is also withdrawing Russia’s ‘most favored nation’ status and pushing for removing the country from the MFN list at the World Trade Organization as well.
The shares were also impacted by a fresh outbreak of Covid-19 in China which has seen several key cities in the country come under fresh lockdowns. These include the economically important regions of Guangdong, Shanghai, Shandong, and Jilin.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.