Shares in European luxury and spirits companies
sank on China concerns Tuesday, as Beijing announced anti-dumping measures on
brandy imported from the EU and held off on announcing more economy-boosting
measures.
The stock prices of French spirits companies Remy Cointreau and Pernod
Ricard dropped after China announced the latest salvo in an escalating trade
row between Beijing and Brussels.
Last week the EU gave the green light to impose extra tariffs of up to 35.3
percent on electric vehicles imported from China.
China’s commerce ministry said Tuesday that, from Friday, operators will
have to pay a “corresponding guarantee” to Chinese customs when importing EU
brandy into the country
Shares in Remy Cointreau — whose brands include Louis XIII, Remy Martin
and Cointreau — tumbled more than eight percent.
Pernod Ricard, which owns Martell cognac, fell more than four percent.
Luxury stocks also fell as China, a major market for the sector, said it
was “fully confident” of hitting its growth target this year but did not
announce more stimulus.
In Paris, Louis Vuitton maker LVMH, which also owns Hennessy cognac, fell
more than 4.5 percent while Gucci-owner Kering retreated more than seven
percent.
Burberry shares plunged by more than seven percent in London while Italian
group Prada, which is listed in Hong Kong, fell 3.8 percent.
Cartier’s Swiss owner Richemont, which owns other jewellery and watch
brands, dropped more than 3.6 percent in Zurich.(AFP)