June 12, 2023

Spanish Stocks Soar on Strong Inditex Performance, While Luxury Companies and Miners Struggle

Spanish stocks experienced a significant boost on Wednesday following the impressive quarterly performance of Inditex, the parent company of Zara. In contrast, other European stocks faced challenges as luxury companies and miners faltered due to weak trade data from China.

As of 0712 GMT, the pan-European STOXX 600 index (.STOXX) saw a marginal 0.2% decline, while Spain’s IBEX 35 index (.IBEX) gained 0.6%.

Inditex (ITX.MC) witnessed a nearly 4% surge in its stock price after reporting a remarkable 16% increase in sales for its spring-summer collection over the past month.

Among the sectors, European retailers (.SXRP) experienced a notable 2.2% jump, leading the sectoral gains, while miners (.SXPP) witnessed a 0.7% decrease.

China’s May export figures turned out to be worse than anticipated, with imports also continuing to decline, painting a grim picture for global demand, particularly from developed markets.

The luxury giant LVMH (LVMH.PA), which has significant exposure to China, saw a 0.5% decline in its stock price.

Concerns lingered regarding potential interest rate hikes by major central banks, including the European Central Bank and the U.S. Federal Reserve in the upcoming week, given the backdrop of slowing economic growth.

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