LIVE MARKETS-What goes down must go up

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WHAT GOES DOWN MUST GO UP

LVMH LVMH.PA shares were down 16% year to date as of Tuesday's close, now it's just 6%. That shows both how much they've struggled but also is another way of reflecting that 12% jump they've seen this morning after their results.

That move, with spillovers into other luxury stocks, has also driven French and broader European indexes higher.

An index of the 10 biggest luxury names is up 6.8% set for its biggest daily percentage gain since January, .STXLUXP and France's CAC 40 .FCHI is up well over 2% and back at its March highs.

The prospect France might actually get a budget passed is also providing a boost at the margin, but it's luxury that's doing the heavy lifting. Hermes HRMS.PA is up 7% and Kering PRTP.PA up 6%.

The other sector doing well is tech up 1.6% .SX8P boosted by ASML up 3.3% after its results.

Defence stocks are at the other end of the spectrum, down 0.5%. .SXPARO

This must partly be a result of investors having to fund all this luxury stock buying from somewhere - and everyone owns a lot of defence - but it could also possibly suggest the huge excitement in the sector is waning, it is their fifth successive day of declines.

On the other hand, they did hit an all time high at the start of this month.

(Alun John)

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EARLIER LIVE MARKETS POSTS

EUROPE BEFORE THE BELL: LUXURY IS BACK CLICK HERE

MORNING BID: FED BACK ON CENTRE STAGE, FOR NOW CLICK HERE