[HSBC: European luxury goods stocks are expected to face a difficult second half of the year] September 9th, according to analysts at HSBC Holdings, Europe’s troubled luxury goods stocks are unlikely to improve in the coming period because the situation in the second half of the year looks more difficult to deal with. Industry benchmarks LVMH and Burberry Group continued their recent declines on Wednesday as brokers downgraded their ratings to hold, saying that the French company, as a representative of soft luxury goods, still has a difficult market outlook, while the British fashion brand has limited potential upside after its recent transformation attempts. The industry has come under pressure this year, mainly due to weak demand in Asian markets and the impact of war in the Middle East on tourist spending. Goldman Sachs Group Inc.'s basket of luxury goods stocks is down 13% year to date, while LVMH's price-to-earnings ratio has fallen to its lowest level in a decade. According to the team led by HSBC Anna, factors that may affect the luxury goods industry in the coming months include weakening growth momentum in mainland China, negative social media reactions caused by the trademark dispute between LVMH and Molly Tea, and slowing sales growth in South Korea and North America.