The Liv-ex November Market Report has been released.
Containing all the latest Liv-ex research and analysis, the full issue includes:
- The October effect: topsy turvy
- Major Market Movers: Italy and Champagne
- Chart of the month: Liv-ex Fine Wine 50 in different currencies
- Critical corner: James Suckling’s wine of the year
- Final thought: The changing face of the Rhone
How to access the full report
If you’re a private collector, please log in or subscribe to Cellar Watch. If you’re a fine wine merchant or a member of Liv-ex, please contact your Account Manager or email [email protected] to discuss package options.
You can download page one – with charts and data – here, or read the text below:
The October effect: topsy turvy
October has a special place in the world of finance, known as the October effect, which marks the psychological anticipation of stock market declines (and alternative investment gains). This year, the picture was more complex. Amidst Brexit uncertainty and the news that the UK is soon to hold its third election in four years, the FTSE 100 dropped 2.2%. Despite the trade war, US stocks moved above their summer peak and set another record on Friday. Gold held steady, but fine wine prices dipped. In the world of wine, the Liv-ex 50, which tracks the performance of the First Growths, suffered the most (-1.6%).
The Liv-ex 1000, the broadest measure of the market, experienced its biggest monthly fall so far this year. The Champagne 50 was its only sub-index to improve this month, up 1.9%, while the Italy 100 dipped the least – only 0.1%. Both regions were excluded from the US tariffs law, and are perhaps starting to see the benefits of this.
Their shares of the total trade by value improved on September: Champagne’s rose from 7.9% to 11.1% and Italy’s from 8.9% to 11.4%. The Rest of the World also reached a record monthly high in October, accounting for 8.8% of the total value traded. Activity for both Bordeaux (49.5%) and Burgundy (15.4%) fell. The most traded vintages from Bordeaux were 2016, 2008 and 2005. Petrus 2016 was the most active wine by value from the region.
October also saw the release of Krug 2006 – “Capricious Indulgence”, the 100-point Dominus 2016 and Penfolds Grange 2015 which has already been traded actively.
