European shares edge higher, luxury stocks hit by weak results

Credit: REUTERS/RALPH ORLOWSKI

European stocks inched higher on Tuesday as investors held out for more U.S. stimulus to limit the economic damage of the COVID-19 pandemic, brushing aside the latest batch of underwhelming quarterly earnings reports from luxury goods makers.

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July 28 (Reuters) - European stocks inched higher on Tuesday as investors held out for more U.S. stimulus to limit the economic damage of the COVID-19 pandemic, brushing aside the latest batch of underwhelming quarterly earnings reports from luxury goods makers.

The pan-European STOXX 600 .STOXX rose 0.3% by 0719 GMT, while the German DAX .GDAXI gained 0.5% and London's FTSE 100 .FTSE was up 0.6%.

After worries of a resurgence in coronavirus cases knocked risk sentiment on Monday, investors waited for the conclusion of a U.S. Federal Reserve meeting and talks over another round of fiscal stimulus for the U.S. economy.

Luxury stocks took a hit after LVMH LVMH.PA slid 2.8% as store closures sparked by the COVID-19 pandemic tore a hole into the Louis Vuitton owner's second-quarter sales.

Gucci owner Kering PRTP.PA and France's Hermes HRMS.PA slipped, while Moncler MONC.MI, which makes luxury puffer jackets, slid 4% after reporting a first-half operating loss for the first time in its history.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Bernard Orr)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))

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