LIVE MARKETS-Buoyant markets point to stronger luxury demand, UBS survey finds

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BUOYANT MARKETS POINT TO STRONGER LUXURY DEMAND, UBS SURVEY FINDS

UBS has peeked under the hood of what is driving luxury consumers in a recent survey, just as the bank expects the sector to break a two-year lull and return to positive earnings in 2026.

And they found that surging stock markets are giving an extra boost to already upbeat American consumers.

In fact, that along with a positive outlook on personal finance is supporting the bank's view that American luxury demand will continue to outperform in 2026.

Conducted between September and November last year, the survey reached almost 3000 consumers across China, the U.S., France and Italy, and left UBS with three main conclusions.

First, American consumers continue to be the most influenced by U.S. stock markets and they are more upbeat about personal finances than the previous year. The U.S. benchmark index S&P 500 has already scaled a fresh record high in January, having surged 16.3% in 2025.

Meanwhile in China the influence of the Chinese stock market on luxury consumers has reached a historical peak.

Consumers' allocation to discretionary spending on luxury goods has ticked to a record level in China and Italy, however in the U.S. the same share has crept down to the lowest of the four countries surveyed.

On the brand front, UBS notes that Cartier - owned by Richemont CFR.S and the bank's top stock pick - consistently ranked in sixth place but moderated year-on-year across all four nationalities, something "to be watched," though it does not affect UBS’s current view.

Respondents were asked for their top three brands.

"For the Chinese consumers, Hermès strengthened its position as the top favourite brand, reversing last year's moderation. For the Americans, Gucci overtook Louis Vuitton at the top of the list," they write.

(Lucy Raitano)

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