** Shares of cosmetics giant Estee Lauder EL.N up ~5% at $66.96 premarket
** 'Big Short' investor Michael Burry's Scion Asset Management buys shares of EL, a regulatory filing showed on Thursday
** On Monday, Washington and Beijing announced a truce in their trade war following which U.S. is dropping extra tariffs imposed on Chinese imports this year to 30% from 145%, while China is cutting them to 10% from 125%
** EL, similar to other retailers, is expected to benefit from this deal as the company depends significantly on sales from markets such as China; 31.3% of the company's total sales in fiscal 2024 came from Asian markets
** Burry's firm ends the first quarter more bearish on Chinese companies including PDD Holdings PDD.O — owner of e-commerce platform Temu — and buys put options on them following Trump administration's recently discussed trade policies
** Put options give investors the right to sell shares at a set price and are used to profit from or protect against a stock's decline
** Up to last close, stock down 15.1% YTD
(Reporting by Anuja Bharat Mistry in Bengaluru)
((AnujaBharat.Mistry@thomsonreuters.com))
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