Luxury stocks rise on Middle East peace hopes

European luxury stocks rallied for a second straight session as growing hopes for a resolution to the Middle East conflict lifted expectations for international travel and high-end consumer spending. Major names including Hermès, Kering, LVMH, Richemont, Moncler and Burberry posted gains (generally 1.7%–3.1%), while Swatch surged over 7% for its best single-day performance since January. The move reflects the sector’s sensitivity to geopolitics: a settlement would reopen Gulf travel flows, boost Gulf consumer sentiment and ease energy-price pressure that has weighed on discretionary spending. The rally narrows recent underperformance versus broader European markets and could lift index-level sentiment across Europe if peace prospects persist.