European luxury, spirits shares sink on China worries

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)