LIV-EX - MARKET UPDATE

Liv-ex 50: 290.50 (0.623%) | Liv-ex 100: 254.31 (0.62%) | Liv-ex 1000: 255.79 (0.40%)

It has been a volatile few days for financial markets in the aftermath of the EU referendum. Sterling has hit a 30-year low against the dollar, a record $30 trillion has been wiped off global equities and risk off sentiment has been strong. The Fine Wine market has, however, become much more risk on, having adopted a more cautious attitude in the run up the referendum. In the week leading up to polling day, fine wine market participants adopted a risk off attitude and the bid:offer ratio dropped from 1.39 to 0.88. Over the same period, the total value of live bids and live offers on the Exchange fell from £29.7 million to £22.8 million. But the sharp drop in sterling after the result of the referendum saw dollar-based buying pick up strongly. In the immediate aftermath, there was a day’s worth of trading activity overnight on the Exchange and since then buyers have become steadily less risk averse. The bid:offer ratio is now at 1.30 and total exposure on the Exchange stands at £30.1 million. The Liv-ex Fine Wine 50 Index has also firmed. It closed Monday at a new year high of 290.50. This is its highest level since February 2014. Given the significant fall in sterling, buyers are likely to maintain their risk on attitude with the Fine Wine 50 Index continuing to firm in the near term.

Fine Wine 50 Index v USD/GBP