European markets witnessed a strong rise after LVMH Group, the largest luxury goods company in the world, reported financial results that exceeded expectations for the third quarter of 2025, which restored confidence in the luxury sector despite the slowdown in the global economy.
LVMH stock jumped more than 12%, recording its best daily performance in two years, driven by high demand in China. It was followed by other companies in the sector, such as Hermes, L’Oreal, Richemont, and Moncler, which rose between 3% and 7%.
The French CAC 40 index recorded gains of 2.5%, while the European STOXX 600 index rose by 0.8%.
The results of the electronic chip company ASML also contributed to enhancing the positive mood in the market, as orders exceeded expectations.
Analysts believed that LVMH’s performance “confirms the strength of the luxury goods sector even in periods of economic instability,” noting that “demand from the wealthy classes in Asia and Europe remains the primary driver of growth.”
