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US buying rises as Sterling plummets

Recent trading activity 

Bordeaux led trade over the weekend, accounting for 54.8% of total activity. ‘On’ vintages such as 2009 and 2010 continued to be in buyers’ sights. 

The top traded labels over the weekend included Château Lynch-Bages 2009 and 2010, Château Les Carmes Haut-Brion 2020 and Château Lafite Rothschild 2018. 

Champagne was the next most in-demand region, with Dom Pérignon 2012 and Louis Roederer Cristal 2014 driving 19.0% of total trade. 

By contrast, Burgundy trade was subdued at just 8.9% of the total. 

US buyers take larger share of trading activity 

On Friday 23rd September, UK Chancellor of the Exchequer Kwasi Kwarteng revealed a ‘mini-budget’ which included a series of tax reforms, including cutting income tax and stamp duty as well as scrapping planned rises to business rates. 

This caused an immediate run on Sterling, which touched US$1.04 to the pound, in Asian trade on Monday morning. 

The news prompted an uptick in buying among US buyers. Over the weekend (23rd-26th September), US buyers accounted for 39.1% of trade compared with 16.9% the previous weekend. 

In Asia too, where several currencies such as the Hong Kong Dollar are tied to the US Dollar, buying has risen as the exchange rate has become more favourable; from 8.0% of total trade in August to 11.7% so far in September. 

Earlier this month, we also examined the opportunities that US buyers had when the Euro hit parity with the Dollar, and continued to strengthen against Sterling. 

As the Dollar has continued to strengthen against the Euro and Sterling over the past month, US buying has increased. As the chart below shows, US and Asian buyers have accounted for a greater share of trading activity in September, while the UK and Europe have been more subdued.  

However, for UK and European buyers, all is not lost. With over 4,000 offers currently available below Market Price, there are still opportunities on the exchange, regardless of currency.   

Opportunities to buy fine wine 

All 20,000+ LIVE opportunities can be found on the exchange and filtered by region, colour, vintage and price. And don’t forget to list stock LIVE as well.

Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 600 merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £80m of bids and offers across 16,000 wines. Independent data, direct from the market.