Treasury Wine Estates Ltd (ASX: TWE) shares are joining in the broader market sell-down today.
Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed on Friday trading for $10.61. In early afternoon trade on Monday, shares are swapping hands for $10.52 apiece, down 0.9%.
For some context, the ASX 200 is down 0.4% at this same time.
That's today's price action for you.
But the outlook for Treasury Wine stock in 2024 got a little rosier over the weekend.
Here's what's happening.
Image source: Getty Images
ASX 200 wine producer keeping one eye on China
Treasury Wine shares took a double wallop during the COVID pandemic.
First, the stock was sold off alongside the broader market panic, which saw the ASX 200 plunge 32% in five weeks.
But Treasury Wine was in for more pain. That came after China retaliated to Australia's call for a probe into the origins of the COVID-19 virus by imposing massive tariffs in excess of 200% on Australian wine imports, among other commodities.
Prior to those punitive import duties, China had been Australia's top wine export market. But that market all but dried up overnight.
Over the past few months, some promising signs have emerged that those wine tariffs may finally be lifted as the two nations work to mend their strained relations.
And over the weekend, trade minister Don Farrell offered some potentially good news for investors in Treasury Wine shares, indicating that progress on lifting the wine tariffs is "well and truly underway".
According to Farrell (courtesy of Sky News):
I would be very confident that early in the new year we will get a favourable result from the Chinese authorities to lift the ban on Australian wine. That will be very important for Australian winemakers.
How have Treasury Wine shares performed longer term?
It's been a tough 12 months for Treasury Wine shares, down 23% since this time last year.
