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Reuters reports that China’s luxury spending is shifting from designer handbags toward prestige beauty as property weakness and softer confidence make prices more decisive. Analysts cite higher “intention to spend” in prestige beauty versus leather goods (37% vs 4%). L’Oreal and Estee Lauder report stronger top-end skincare growth, while Hermes and LVMH say demand is flat to slightly firmer.

French stocks rose for a third straight session as earnings updates supported sentiment. The CAC 40 traded higher, around 8,429 (+0.28%). Oil fell with easing Middle East worries; Brent was about $82.78. Renault gained on auto-industry revival reports, Orange raised annual profit outlook, and Safran lifted FY26 guidance. INSEE said consumer confidence rose to 86 in July.

Luxury firms face weak fashion demand and reduced Middle East spending, shifting investor focus to jewelry. Analysts cited by Vontobel and Barclays say jewelry offers steadier growth and margins. Richemont’s Cartier and Van Cleef & Arpels jewelry sales rose 24% in Q to June 30. LVMH expects Watches and Jewelry growth to rise to 8% in 2026. LVMH, Kering, and Hermes report next.