European Stocks Tumble Amid Luxury Sector Slump

European shares opened lower on Wednesday, with luxury stocks dragging down the market following disappointing results from LVMH. The pan-European STOXX 600 index fell 0.6%, affected by lukewarm corporate earnings. LVMH's shares dropped 5.5% as Chinese consumers reduced spending. Meanwhile, technology and financial sectors also experienced declines.

European shares opened lower on Wednesday, weighed down by luxury stocks after disappointing results from the world's largest luxury group LVMH dampened investor sentiment.

The pan-European STOXX 600 index declined 0.6% to 512.3 points as of 0720 GMT, primarily due to a 2% drop in the personal and household goods sector. LVMH shares fell 5.5% after the luxury giant missed second-quarter sales estimates, mainly due to reduced spending by Chinese shoppers.

The French benchmark CAC 40 index, which includes LVMH, fell 1.2% and was the weakest performer among regional markets. Technology shares also struggled, with a 0.8% decline led by a 4.7% drop in Temenos after the Swiss banking software company lowered its annual outlook following a critical report by short-seller Hindenburg Research.

Across the Atlantic, poor results from U.S. tech giants Tesla and Alphabet further dampened market sentiment. Deutsche Bank shares plunged 7.7% after Germany's largest lender reported its first quarterly loss in four years.

(With inputs from agencies.)