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European Stocks Fall as China Tax Risks Weigh on Luxury Shares

(Bloomberg) European stocks retreated after their best weekly gain since March, with luxury goods shares under pressure after China signaled plans for property tax legislation and economic data disappointed. The Stoxx Europe 600 slid 0.5% by the close in London as luxury stocks like LVMH and Kering SA echoed their drop in August, which was driven by nervousness over China’s intent to reduce its wealth disparity. The mood was also subdued by data showing economic growth slowed in the country, fueling fears about further setbacks in the recovery. All European equity sectors traded lower, with automakers and travel falling the most. European stocks have rebounded over the past two weeks after slumping through September over concerns about slowing global growth and the impact of energy costs on inflation. The benchmark came under pressure on Monday after data showed China’s housing slump and electricity shortages weighed on economic growth last quarter, while property curbs remain. â

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