London loses position as biggest European stock market to Paris

Paris has overtaken London as the home of Europe’s biggest stock market, new analysis has revealed.

The French stock market now has a combined value of $2.823 trillion, marginally above the UK stock market which is worth $2.821tn altogether, according to figures from Bloomberg.

Five years ago, when Britain voted to leave the EU, British stocks were worth $1.5tn more than France.

The fact that smaller and consumer-focused firms have been hit hard by an economic downturn, made worse by the energy crisis, high inflation, and recent market volatility, has dragged down the collective value of the UK’S listed companies, Bloomberg said.

Furthermore, a former Bank of England policymaker, Michael Saunders, told Bloomberg TV that the UK economy has been “permanently damaged” by Brexit, because it reduced the country’s potential output and resulted in reduced investment into UK businesses.

France’s stock market has been bolstered by luxury retail companies enjoying a post-covid spending boost.

Louis Vuitton owner LVMH tops the French Cac 40 with a market capitalisation – meaning the total value of its shares – of $364 billion.