Bad news on the US economy is bad news for Waterford Wedgwood. When an economy falters, the sellers of luxury goods are among the first to suffer.

Even though the company hedges its dollar exposure there has always been a strong correlation between dollar gyrations and movements in the Waterford share price. Shareholders have done well this year with the shares up from a low of €0.90 to €1.46 at the end of November.

With a shaky first quarter in prospect for the US economy and fears of a drop in sales of luxury goods fuelled by bad pre-Christmas vibes from some of the luxury product manufacturers and retailers, some shareholders took the opportunity to lock in profits.

With profit-taking pulling the shares back at the end of the year, and US stores groups nervous about the trading prospects in the early months of 2001, an early improvement in the share price is not expected.