October 3, 2019 / 8:28 AM / 13 days ago

UPDATE 1-European luxury, drink stocks lifted by U.S. tariffs relief

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LONDON, Oct 3 (Reuters) - European luxury goods and drinks company shares rose on Thursday after new U.S. tariffs in retaliation over EU aircraft subsidies excluded cognac, champagne and leather goods.

Remy Cointreau shares were up as much as 6.3% at 0756 GMT and set for their best day since Jan. 19 2017, making them the top gainer on STOXX 600, while Pernod Ricard shares rose 3.6% to top Paris’ blue chip index.

“Overall (it) represents a light touch,” said Jefferies analyst Edward Mundy.

Britain’s Diageo, the world largest spirits company, was among the top gainers of London’s FTSE, up 1.7%. British fashion brand Burberry rose 1%, while Italy’s Moncler gained 2.1%.

The United States on Wednesday said it would impose 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, and cheese from across the continent.

The announcement came after the World Trade Organization (WTO) gave Washington a green light to impose tariffs on $7.5 billion worth of EU goods annually in the long-running case, a move that threatens to ignite a tit-for-tat trade war.

European plane maker Airbus jumped 4.1% after falling 2% during the previous session as fears over an intensifying trade war weighed.

The overall European benchmark STOXX 600 was up 0.2$ as selling pressure eased after worries over global growth caused a two-day rout that wiped off all gains made in September. (Reporting by Julien Ponthus, Joice Alves and Danilo Masoni; editing by Josephine Mason and Alexander Smith)

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