European shares fell on Monday as disappointing results from Swiss luxury group Richemont weighed on sentiment and weaker economic growth in China raised concerns about demand from the world's second-biggest economy.
Story: The pan-European STOXX 600 index declined 0.3% as luxury giants led the declines. Richemont shares dropped 8.0% after weaker-than-expected organic sales growth, particularly in the Americas. Analysts said this suggests spending curbs in the U.S. are starting to bite. Other luxury firms like LVMH, Hermes and Kering also fell between 1% and 3.7%.
Data showing China's economy grew at a frail pace in the second quarter also weighed on shares, raising worries about demand from the key market. Mining stocks, which depend on Chinese demand, declined 1.4%.
While European shares gained last week on hopes the Fed could slow rate hikes, analysts cautioned other central banks have more work to do in tightening policy.
Banco BPM shares rose 2.1% after an agreement with a private equity fund, helping limit losses for bank stocks. Healthcare shares also performed strongly, with Argenx SE jumping 26% after positive drug trial results.
