Worries over Europe’s debt crisis sparked a stock sell-off today.
The S&P Retail Index was down 1.5 percent, or 8.92 points, to 600.29 as trading settled and the Dow Jones Industrial Average ended the day down 1.1 percent, or 138.12 points, to 12,502.66.
The decliners included Quiksilver Inc., 5.3 percent to $2.31; Fossil Inc., 4.6 percent to $73.86; Fifth & Pacific Companies Inc., 3.9 percent to $10.31; J.C. Penney Co. Inc., 3.8 percent to $21.71, and Coach Inc., 3.4 percent to $57.74.
Stocks bounced back some from sharper declines early in the day, but traders never fully recovered from nervousness that depressed European markets. Investors were skeptical that a summit of European Union leaders beginning Thursday will lead to a clear path out of the region’s financial problems.
The FTSE MIB in Milan slumped 4 percent to 13,111.97, while the CAC 40 in Paris dipped 2.2 percent to 3,021.64. The DAX in Frankfurt fell 2.1 percent to 6,132.39 followed by the FTSE 100 in London, down 1.1 percent to 5,450.65.
The declines came after Spain formally requested a bailout for its banks. Cyprus also asked the European authorities for a bailout. The Cypriot government said in a statement that the financial assistance is required to "contain the risks to the Cypriot economy, notably those arising from the negative spill over effects through [the] financial sector, due to its large exposure to the Greek economy."
Banking stocks such as Deutsche Bank in Frankfurt and Societe Generale, BNP Paribas and Credit Agricole in Paris led the market drop. Among the fashion decliners were Yoox, slumping 6 percent to 11.40 euros; Safilo Group, 4.2 percent to 4.49 euros; Mulberry, 4.5 percent to 14.75 pounds, and Carrefour, 2.8 percent to 14.02 euros. Those stocks that managed to notch gains included Marcolin, up 0.9 percent to 4.69 euros; PPR, 0.4 percent to 111.20 euros, and Hermes, 0.8 percent to 247.65 euros.
The pound traded for $1.56 against the dollar Monday, while the euro traded at $1.26.
Beyond Europe, the global economic trajectory has also become a source of angst.
“For the third year in a row, global growth has started out strong, only to falter by midyear,” wrote IHS Global insight economists Nariman Behravesh and Sara Johnson in a report. “The incoming economic data point to softness in most parts of the world. In Europe, all signs are flashing red. The IHS forecast now incorporates a Greek exit from the Eurozone in mid-2013, and projected growth rates for all regions of the world have been revised downward since last month.”
The economic forecasting firm expects growth in real global GDP to slow to 2.7 percent this year from 3 percent last year.
“Until recently, rising oil prices were viewed as the biggest threat to the global expansion,” the economists said. “Now, the re-escalating euro zone crisis is a bigger danger, followed by the risk of a more pronounced deceleration in the Chinese economy.”
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion