BUZZ-European luxury goods: HK sales downturn spurs broker downgrade

** Luxury goods stocks fall back from record highs as JPMorgan cuts sector to "neutral" vs "overweight"

** JPM flags luxury sector was huge beneficiary of DXY rally - dollar stumbled last wk on expectations US interest rates will rise more slowly than thought - & notes Hong Kong luxury sales are weakening again

** Big spending mainland Chinese shoppers are avoiding HK after protests shut down key parts of the city for 2.5 mths end 2014. China's slowing economy & anti-graft campaign have also changed consumption patterns

** Christian Dior & LVMH, which both hit all-time highs last wk, down >2.5 pct as JPM cuts pair to "neutral" on valuation grounds

** Possible signs of turbulence elsewhere in sector; French fashion house Chanel has said it plans to cut prices in Asia

** De Beers - 85 pct owned by Anglo American (LSE: AAL.L - news) - has said HK protests have slowed diamond sales growth; Tod's said recently a weak Chinese market was continuing to weigh on sales

** Losses seen by rivals; Burberry -2.8 pct, Kering (Swiss: KER.SW - news) -1.7 pct & Swatch -0.7 pct (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)