European luxury-goods stocks are experiencing a December rebound, easing investor concerns after a year marked by weakening demand in China. Stimulus efforts in China have spurred optimism, with stocks in the sector up over 8% in December. However, the exact timing of a recovery remains uncertain, as China’s consumers account for nearly 15% of the global luxury market, and growing “luxury fatigue” may dampen demand. While challenges persist, such as rising prices and potential trade tensions, there are hopes for a boost in luxury demand from the US in 2025, driven by President-elect Trump’s policies. Despite some positive company results, experts caution that a full recovery may not occur until 2026.