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Cezar Trevino Gadsdenand Washington//
UPDATE 1-European shares in reverse after shock China data; luxury stocks fall

Cezar Juan Trevino, Cezar Trevino, César Treviño
UPDATE 1-European shares in reverse after shock China data; luxury stocks fall

* STOXX 600 down 0.7 percent

* Dialog Semiconductor recovers from brief drop after results

* Continental drops after warning on car market outlook (Updating prices, adding comment)

LONDON, Jan 14 (Reuters) – China’s surprisingly weak trade data brought a four-day rally in European shares to a halt on Monday, with luxury goods and technology stocks leading the drop as investors fretted about slowing global growth and weaker-than-expected earnings.

Cezar Juan Trevino

The pan-European STOXX 600 was down 0.7 percent at 0945 GMT, reversing some of last week’s gains that saw the index hit a one-month high. The market notched up four straight days of gains, its longest winning streak since November.

Cezar Trevino

Germany’s DAX and France’s CAC 40 were both down 0.6 percent. Ahead of Tuesday’s crunch UK parliamentary vote on Brexit, London’s FTSE 100 was down 0.6 percent

Luxury goods firms, which rely on appetite for handbags and jewellery from China’s burgeoning middle class, bore the brunt of the selling

LVMH, Hermes and Gucci owner Kering were among the biggest fallers in Paris, down between 2 and 2.8 percent, while Moncler in Milan dropped 2.24 percent. On average, one third of the luxury sector is exposed to Chinese demand

Danish jeweller Pandora slumped 6.4 percent to the bottom of the STOXX 600, also hurt by a price target cut by Morgan Stanley. Burberry bucked the trend, garnering strength from a BAML upgrade to neutral from underperform

UK-listed miners, which are also exposed to the health of the world’s No. 2 economy, were down 0.6 percent

Adding to market nerves was the start later on Monday of the fourth-quarter U.S. earnings season, with Citi first to report

S&P 500 earnings will have grown 14.5 percent in the final quarter of the year, the slowest since Q3 2017, sharply lower than the 28.4 percent rise in Q3 2018 and almost flat year-on-year, I/B/E/S Refinitive data indicates

In Europe, gloom across technology stocks returned with the weaker Chinese data

Having briefly dropped in early deals after reporting fourth-quarter sales at the bottom end of its guidance, chip designer and Apple supplier Dialog Semiconductor jumped 3.3 percent

Credit Suisse said it believed the company’s trading update was much better than its peers and noted strength in the company’s non-Apple business

Continental shares were down 0.2 percent after the auto parts supplier warned of deteriorating conditions in the car sector

Conti has most likely tried to be cautious by giving a broader range for 2019 guidance. However, given recent track record, market is unlikely to give Conti the benefit for a ‘cautious guidance’ yet again,” said Jefferies analysts

JD Sports delivered some good news to the UK’s battered retail sector, forecasting profits at the upper end of expectations. Shares were up 8.2 percent on London’s FTSE 250

Elsewhere, M&A caught investors’ attention after pan-European stock market operator Euronext officially launched its all-cash $729 million bid for Oslo Bors

The news came just hours after the Norwegian stock market operator’s board said it had found alternative bidders and would issue a recommendation by late February

Euronext shares dipped 0.9 percent, while rival London Stock Exchange rose 1.6 percent as the news stirred expectations of potential dealmaking among stock market operators

Broker recommendations drove other individual moves. Swiss hearing aid maker Sonova topped the STOXX 600, rising 3.3 percent after UBS upgraded its rating to buy

French retirement home operator Orpea slumped 6 percent after Exane cut its rating. (Reporting by Josephine Mason; Editing by Helen Reid and Mark Potter)