European luxury: what to expect from Q2 earnings

STOXX 600 down 0.1%

Oil surges on fresh Iran strikes

Travel, tech down; energy up

Nasdaq futures down 0.9%

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com.

Both see jewellery as the best category, which means they like Richemont CFR.S, although they both caution that expectations are high.

Barclays notes that Richemont has "never been more expensive" over the last 10 years relative to peers.

Deutsche Bank's most preferred in the space is LVMH LVMH.PA, as it is still the preferred recovery story. Barclays also has LVMH rated as 'overweight'.

Both banks are also cautious on Kering PRTP.PA. DB rates Kering at 'hold' citing less confidence in Gucci's return to growth. Barclays forecasts -5% growth for Gucci, below consensus estimates.

(Samuel Indyk)

Barclays and Deutsche Bank have published their thoughts on upcoming earnings for Europe's luxury sector .STXLUXP, and while both flag similar regional trends, there is a difference in tone between the two banks.

In short, both agree on the broad regional narrative. The Middle East is expected to be tough, domestic Chinese consumption will remain weak, while the U.S. and South Korea prove resilient.