STOXX 600 end flat
Kering flags Q1 sales drop, top decliner on STOXX 600
Lonza to buy biologics site from Roche in US for 1.2 bln
Johnson Matthey to sell medical device parts unit for 700 mln

March 20 Reuters European shares were flat on Wednesday, pressured by a selloff in luxury stocks and in the absence of big bets by investors ahead of a crucial Federal Reserve meeting later in the day.

The panEuropean STOXX 600 index ended largely unchanged at 505.34 points, with the personal and household goods index housing luxury stocks, down 1.3 and leading declines.

Kering shares tumbled 11.9 to the bottom of the STOXX 600 after the French luxury goods group warned its firstquarter sales are likely to drop by around 10, weighed down by star label Gucci due to weakness in Asia.

Combined with a profit warning from Burberry in January, the highend sector is grappling with a worsening slowdown in demand for luxury goods.

In a sectorwide reaction, other luxury stocks such as LVMH, Burberry, Richemont and Christian Dior dropped between 1.6 and 3.2.

The Kering slump is a warning that the slowdown being seen in China is having a real impact around the globe. The postCovid Chinese recovery has not really happened and clearly Chinese consumers are now cutting back on luxury items as they tighten their belts, said Stuart Cole, chief economist at Equiti Capital.

On the data front, German producer prices fell yearoveryear in February, while highlyanticipated British inflation…