LVMH and Kering shares slump as European markets retreat from China stimulus rally

European markets were lower Tuesday as regional sentiment sours further after a shaky start to the week, with investors watching the conflict in the Middle East closely and its potential impact on oil markets, supply chains and the global economy.

The pan-European Stoxx 600 was down 0.9% in early deals, with all sectors and major bourses trading in the red. Mining stocks shed 4.54% while household goods fell 2.37%.

European luxury stocks, including powerhouse brands LVMH and Kering, retreated on the open as sentiment turned sour on a potential demand boost from stimulus measures in the key Chinese market.

Elsewhere overnight, U.S. stock futures were little changed following a losing day on Wall Street Monday as rising oil prices and bond yields weighed on markets.

In the Asia-Pacific region, an initial rally for Chinese markets lost steam after a briefing from the country’s National Development and Reform Commission provided few details on further stimulus.

Earlier, mainland China’s CSI 300 index had skyrocketed over 10% at the open at its return from the Golden Week holiday, but the index pared gains later in the session.

Key releases for markets this week include U.S. Federal Reserve minutes and German trade on Wednesday, U.S. inflation on Thursday and U.K. economic growth on Friday.