STOXX 600 up 0.9
Luxury stocks shine on China39;s stimulus
Smiths Group down after annual profit miss

Sept 24 Reuters European shares traded on a positive note Tuesday, as China39;s sweeping stimulus measures boosted stocks of luxury companies and miners.

The panEuropean STOXX 600 index gained 0.9 to 520.88 points by 0810 GMT. The stand out regional performer with a 1.5 jump was France, which is home to a host of luxury brands.

China39;s top financial regulators unveiled their biggest stimulus since the pandemic, saying they would cut bank reserves by 50 basis points while reducing mortgage rates.

Luxury companies, which rely heavily on Chinese consumer spending, were the biggest boost on the index.

LVMH, Hermes, Kering, Dior, and Burberry gained between 4 and 5.

The Chinese consumer is by far the biggest market for European luxury sales. That is the connection investors are making and taking a leap of faith that this Chinese monetary stimulus will feed through into the spending power of the Chinese consumer, said Ben Laidler, head of equity strategy at Bradesco BBI.

Basic resources led sectoral gains, jumping 4.5, and set for their best day in nearly two years, as copper prices hit a twomonth high supported by China39;s measures and improving demand in the region.

Britain39;s FTSE gained 0.6, as stocks of metal miners rose on China39;s stimulus plans.

Another driver for investor sentiment is potential further rate cuts by the U.S. Federal Reserve. Markets…