Diageo PLC (LSE:DGE) got an early boost on Thursday after China backtracked on plans to introduce anti-dumping measures on imported brandy.
Shares in the FTSE 100-listed beverage company climbed early on before falling as they began trading without the right to their latest dividend award.
China launched a probe last January over European brandy imports on fears companies were selling drinks in the country below market rates.
This had weighed on liquor makers, with China making one of the largest markets for the likes of France’s Remy.
Producers said at the time that they suspected the move from China was part of a broader trade spat rather than the liquor market itself.
Diageo climbed 2.3% initially on the news.