(March 31): Three former market darlings have accounted for over half of the €420 billion wiped off European stocks this quarter.
LVMH Moët Hennessy Louis Vuitton SE, SAP SE and Novo Nordisk A/S have slumped by about 30% so far this year, together making up about 53% of the total market capitalisation shed by constituents of the Stoxx Europe 600 index. Their share of the losses far exceeds a combined index weighting of 3%.
Once the most valuable companies in Europe, these fallen champions have been hit by industry downturns and new competitive threats that left them trading well off their peaks going into 2026. After missing out on broader market gains over the first two months of the year, they were then caught up in the global rout in March that followed war in Iran.
“When you look at these companies, the fact is that their markets have simply shrunk and so have their valuation multiples,” said Nicolas Domont, a fund manager at Optigestion in Paris. “Luxury had pent-up demand post-Covid-19, SAP is confronted by AI and Novo is now facing stiff competition on obesity,” he added.
France’s LVMH led the retreat with a loss of €90 billion, as the luxury industry braced for a fall in demand caused by slower growth and the loss of business in wealthy Gulf markets. Rival Hermès International SCA also shed more than 20% in market capitalisation.
See also: EU lawmakers approve US trade deal after several delays
German software group SAP, meanwhile, took a €75 billion hit as investors shunned industries seen as the most likely to be disrupted by new artificial intelligence tools that emerged during the quarter.
Novo Nordisk, once seen as Europe’s leading corporate in terms of revenue growth, suffered a severe setback following disappointing data for its next-generation obesity shot.
Few winners
See also: German business outlook sinks as Iran War puts recovery ‘on ice’
Dutch chip equipment maker ASML Holding NV was one of the few winners over the period. Now Europe’s largest company, it gained more than 20% — adding nearly €74 billion to its market capitalisation — boosted by demand from the AI industry.
“It’s sad to say but Europe lacks champions when it comes to growth at the moment,” Domont said.
2026 started well for European stocks. The regional benchmark gained more than 3% in both January and February, outperforming the S&P 500. The Iran war triggered a dramatic reversal and the Stoxx Europe 600 plunged 8.4% in March, wiping out €1.4 trillion of market capitalisation as soaring oil prices stoked concerns about higher inflation and weaker growth. The index has lost nearly 2% for the quarter.
Over on Wall Street, the S&P 500 is down nearly 7% year-to-date. Microsoft Corp, Nvidia Corp and Apple Inc have accounted for 45% of losses on the US index, with a combined weighting of 19%. Big tech stocks have been roiled this year by twin AI fears — when huge investments will pay off and to what extent startups like Anthropic PBC will take their business.
Uploaded by Arion Yeow
