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Liv-ex 100 gains 0.22% in February

The EU and UK officially commence trade negotiations today (02 March). If the two sides fail to see eye to eye by Q2, the UK has threatened to walk away with the Euro and Sterling bound to be affected. Covid-19 is also influencing Global exchange rates, as investors move into traditionally safer currencies – USD, NOK, and CHF.

The Liv-ex 100 has held up in the teeth of the global storm however, rising 0.22%. Tariff-free regions, Italy and Champagne provided the strength while Bordeaux and Burgundy continued to drift.

Trade volumes picked up for the second month with the US decision to postpone any further tariff hikes for at least six months encouraging buyers back into the market. However, the emerging news around Covid-19 has kept Asian buyers generally on the side lines.

Burgundian wines, DRC, Richebourg 2014 and Armand Rousseau, Chambertin Close De Beze 2016, were the biggest riser and faller, respectively, in the month. The former rose 14.3% and the latter fell 11.7%. Top tier Burgundy prices face heightened volatility in the market due to their rarity and subsequent lack of liquidity.

Italy featured heavily in the top moving wines of the month. The fourteen wines featured in the Liv-ex 100 averaged a 1.3% gain, the best of all regions. Champagne was also not far behind, averaging a 0.7% rise, as the region continued to generate excitement around recent releases.