The LVMH share is back to test a crucial support at €600 for the medium-term outlook due to the sharp rise in rates and health restrictions in China.

LVMH shares are under pressure in the face of rising rates and the complicated health situation in China

Faced with renewed uncertainty, the LVMH (MC) share price is returning to test key support at €600. Despite satisfactory company results with growth in most segments and regions, the share price has been battered since the beginning of the year by the renewed risk aversion in the markets caused by the slowdown economy and the war in Ukraine, as well as the sharp rise in bond yields.

In the shorter term, the LVMH share was penalized by the tightening of health restrictions in China, a key market for luxury companies. The inhabitants of Shanghai, the country’s economic engine, and part of Beijing are confined due to the resurgence of contamination, which will inevitably have an impact on the group’s results in the second quarter.

Bond yields and the health situation in China will be the two most important things to watch for LVMH stock in the coming weeks, while inflation is less of an issue for the group given its considerable pricing power. and its relatively energy-efficient production.

LVMH stock price daily chart – key levels

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