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LVMH Q2 sales misses estimates, shares fall

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Deutsche Bank down after reporting first loss in 4 years

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Euro Zone HCOB's PMI drops to 50.1

(Updated at 0830 GMT)

By Pranav Kashyap and Shristi Achar A

July 24 (Reuters) - European shares fell on Wednesday,

dampened by luxury stocks after dour results from LVMH weighed

on sentiment and as a raft of lacklustre corporate earnings

added to the sombre mood.

The pan-European STOXX 600 index moved 0.8% lower

at 511.24 points by 0830 GMT, led by a 1.8% slump in personal

and household goods sector.

Shares of the world's largest luxury goods firm LVMH

fell nearly 5% after it missed estimates for

second-quarter sales as Chinese shoppers reined in their

spending habits.

Shares of Christian Dior, part of the group's

fashion and leather goods division, fell 5.3%.

The French benchmark CAC 40 index, which houses both

retail giants, lost 1.6% and underperformed among regional

bourses.

"Companies that do have large exposures to China - we're

going to see investors heading into earnings with caution.

Seeing a bit of disjointed earnings season and that's leaving

investors concerned and a lack of drive in equity markets," said

Daniela Hathorn, senior market analyst at Capital.com.

Technology shares shed 1%, with Temenos

down 3.5% after the Swiss banking software firm lowered its

annual outlook, citing an impact of short-seller Hindenburg

Research's report on its half-year performance.

Across the Atlantic, dismal results from U.S. tech giants

Tesla and Alphabet also dented sentiment.

"We're seeing a spillover effect into Europe after results

has been weak for Tesla. Alphabet performed relatively well but

if you nitpick these earnings, you see some areas where it falls

short and investors are becoming a lot more selective," Hathorn

added.

Earnings season in Europe and the U.S. has kicked off to

a rocky start, with the STOXX 600 wavering amid a whirlwind of

mixed earnings reports, swinging on both sides with each passing

update.

Meanwhile, HCOB's preliminary composite Purchasing

Managers' Index data showed

growth in Euro zone

business activity stalled this month as a tepid expansion

in the bloc's dominant services industry failed to offset a

deeper downturn among manufacturers.

Among other stocks, Iveco Group ( IVCGF ) slumped 12.6% after

the Italian truck and bus maker's operating profit fell 4% in

the second quarter.

Deutsche Bank lost 6.7% after Germany's largest

lender posted its first loss in four years in the second

quarter.

On the bright side, British consumer goods Reckitt Benckiser ( RBGPF )

gained 3.2%, after it planned to exit a portfolio of

home care brands by the end of 2025.