LIVE MARKETS-Time to step back into luxury?

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

TIME TO STEP BACK INTO LUXURY?

It hasn't been exactly a bright year for luxury with the STOXX Europe Luxury 10 index .STXLUXP up a meagre 2.6%, though Barclays reckons recent developments could power up the space.

"We tactically upgrade Luxury to OW as the sector remains a laggard and could benefit from dollar stabilisation, improving wealth effect in the US and some relief in China," it says.

Strategists at the UK bank point out that tariff relief has supported the dollar - a positive for dollar earners like luxury, and that could help further stabilise analyst revisions.

The re-emergence of a "Trump put" narrative could revive a wealth effect that favours high-end US consumers, another plus for the sector, along with reduced concerns around China.

"Cons Disc... investor positioning remains light, suggesting room for further gains."

Meanwhile, Burberry BRBY.L stole the show on the FTSE 100 .FTSE this morning, popping 10% on its CEO's plans to turn around the company. The stock is still down over 8% this year.

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

EARNINGS DRIVE BIG MOVES CLICK HERE

BEFORE THE BELL: EUROPE STEADY, CHINA TECH EYED CLICK HERE

MARKETS NEAR EVEN KEEL AMID TRADE DEAL HOPE CLICK HERE