Shares across the European luxury retail sector rose sharply on Thursday after Cartier-owner Richemont posted bumper Christmas jewellery sales.

The sector has been in the doldrums as sales have suffered consumer weakness and economic jitters, particularly in the key luxury market of China. But Richemont said revenue from jewellery, its biggest arm, surged 10 per cent to £5.23billion during the festive season. Analysts expected revenue to rise by around 1 per cent.

The results were driven by double-digit growth in Europe and the Americas, two regions which brands and analysts have been banking on to deliver growth.