Volkswacht Bodensee - Wall Street rally loses steam as European luxury shares advance

Major US indices spent part of the day in positive territory but were unable to extend Wednesday's rally in a session Briefing.com described as "lackluster."

US retail sales grew 0.4 percent from November to December, a slower pace than in November but still a solid increase. In a separate report, the National Retail Federation estimated the growth in US holiday sales at four percent for 2024, topping estimates.

The retail figures came on the heels of Wednesday's consumer price index figures, which eased concerns that the Federal Reserve will keep interest rates high.

After major indices gained around two percent Wednesday, all three finished lower on Thursday.

But bourses in Europe and Asia pushed higher.

The Paris stock market surged more than two percent after Cartier owner Richemont reported record quarterly sales.

The Swiss luxury firm ended the day more than 16 percent higher. Sales in Richemont's Asia-Pacific region fell seven percent in the third quarter, dragged down by an 18 percent drop in China, Hong Kong and Macau.

But the company enjoyed double-digit increases in Japan, Europe, the Middle East and Africa.

"It seems that despite the challenging situation in China and in watches, Richemont has never been stronger," said Jean-Philippe Bertschy, analyst at investment firm Vontobel.

In Paris, shares of Louis Vuitton, Hermes and Gucci owner Kering rose, while Burberry forged higher in London.

London rose more than one percent even as data showed the UK economy expanded at a slower pace than expected in November.

"It is a sea of green in the European equity space..." noted Kathleen Brooks, research director at XTB trading group.

"There are threats to inflation down the road, but they are concerns for another day.

"For now, stocks are playing catch up, bonds remain stable and the weakening in the dollar in recent days has helped to boost risk sentiment."

Still, there remains a certain amount of caution ahead of Donald Trump returning to the White House on Monday. The Republican has promised to ramp up tariffs on imports, and slash taxes and regulations, something that many fear could reignite inflation.

- Key figures around 2130 GMT -

New York - Dow: DOWN 0.2 percent at 43,153.13 (close)

New York - S&P 500: DOWN 0.2 percent at 5,937.34 (close)

New York - Nasdaq Composite: DOWN 0.9 percent at 19,338.29 (close)

London - FTSE 100: UP 1.1 percent at 8,391.90 (close)

Paris - CAC 40: UP 2.1 percent at 7,634.74 (close)

Frankfurt - DAX: UP 0.4 percent at 20,655.39 (close)

Tokyo - Nikkei 225: UP 0.3 percent at 38,572.60 (close)

Hong Kong - Hang Seng Index: UP 1.2 percent at 19,522.89 (close)

Shanghai - Composite: UP 0.3 percent at 3,236.03 (close)

Euro/dollar: UP at $1.0306 from $1.0289 on Wednesday

Pound/dollar: DOWN at $1.2237 from $1.2242

Dollar/yen: DOWN at 155.17 yen from 156.47 yen

Euro/pound: UP at 84.18 pence from 84.04 pence

West Texas Intermediate: DOWN 1.7 percent at $78.68 per barrel

Brent North Sea Crude: DOWN 0.9 percent at $81.29 per barrel

burs-jmb/dw

C.Stoecklin--VB