Bloomberg: Paris overtakes London as Europe’s largest stock market
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London gave way to the largest stock market in Europe to Paris. Estimated Bloombergthe total value of shares of companies traded on these exchanges amounted to $ 2.823 trillion for the French stock market and $ 2.821 trillion for the British.
This is due, among other things, to the recent rise in shares of French luxury goods manufacturers such as LVMH and Gucci, which are rising in the face of the lifting of covid restrictions in China, in connection with which investors expect Chinese buyers to become more active in buying such goods. This was also facilitated by the fact that the pound sterling against the dollar has fallen by 13% since the beginning of the year, while the euro against the dollar – only by 9%.
In terms of larger and longer-term trends, Brexit had a negative impact on the British stock market – in 2016, on the eve of the decision to leave the EU, it outperformed the French stock market by $1.5 trillion. “Brexit has caused long-term damage to the British economy as a whole. There would be no need to raise taxes and cut spending if Brexit had not reduced potential GDP so much,” said Michael Saunders, a former member of the monetary policy committee of the Bank of England.
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