Gucci-owner, Louis Vuitton and Hermes drop €28bn in market value on US concerns

'Subdued' performance of luxury goods in US offset by buoyant demand in Asia, analysts say

Shares in Louis Vuitton-owner LVMH dropped 4%.

A blistering rally in luxury goods shares this year powered by international demand particularly from China has taken a hit, wiping out more than €28bn from the sector. 

Shares in Hermes slumped as much as 5.5%, while LVMH Moet Hennessy Louis Vuitton, or LVMH, dropped about 4% and Gucci-owner Kering saw its shares decline more than 2%. In the past year, the high-flying sector has become to the European stock market what Big Tech is to the US: A collection of dominant businesses whose growth has held up even as the economy waxes and wanes.