Fashion industry beats European concerns

Friday, 01 October 2010

Yesterday, the FashionUnited Top 100 Index closed at 1.151.66, slightly cutting its weekly growth, by 4 points. Winners on Wednesday saw their shares sinking just 24 hours afterwards. It was the case of H&M, which dropped 1.3 points the day after it unveiled last quarterly figures. Also MARKS&SPENCER suffered during the past trading session, finalizing it with 2.5 points less, while LVMH dropped by 1.43%.

Investors developed a taste for high fashion today, with Burberry's shares hitting another record high on renewed speculation that a suitor is circling. Brokers in the City named a price of 1350p-a-share for the British luxury goods group. Burberry has long been touted as a potential takeover target for one of its larger foreign peers.

Within the FashionUnited Top 100, there were few winners, as Germany based Puma AG, gaining 1.55 points; Ted Baker, adding 13.99 points to its speedy increasing position; or Triumph International, with a final toting up of 5 points.

Under scoring was the British success-story Asos, which launched a sister site in the USA on Thursday. The online boutique tailored its site for American shoppers with a U.S.-focused homepage, prices in dollars, and no British terminology. The online retailer was timidly moving along its previous position, waiting for the early responses from both buyers and investors to react at the trading floor.

The trading day started with concerning European news, as rating agency Moody downgrading Spain to Aa1, while the Irish government said the total cost of bailing out Anglo Irish Bank was 34 billion euros (£29 billion).But improved US data lifted the mood later in the day, with the final second quarter GDP revision coming in slightly better than expected at 1.7%, while weekly jobless claims fell to 453,000 from 465,000 the previous week.

About other news affecting the fashion industry, a bill that would give US companies the ability to defend themselves against currency manipulation - with China the most likely target - has edged closer to becoming law after an overwhelming vote in its favor on Wednesday by the US House of Representatives.

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