Britain’s main stock market has reclaimed its position as Europe’s most valuable market for the first time in almost two years, data showed.
The market capitalization of companies listed on the London Stock Exchange (LSE) reached $3.18 trillion on Monday, surpassing the $3.13 trillion of companies listed in Paris, according to Bloomberg data.
The companies’ valuations have fluctuated since then and remain close, but analysts are calling this a milestone.
The French market has been depressed by uncertainty surrounding the election, while the UK market is recovering after several years of stagnation, he said.
The LSE was Europe’s largest stock market for many years until it was overtaken in November 2022.
Analysts at the time blamed former Chancellor Liz Truss’s mini-budget, a weak pound, recession fears and the impact of Brexit for the LSE’s poor performance.
In 2016, the LSE was worth about $1.4 trillion more than its rival Paris bourse.
Analysts say market investors generally abhor uncertainty and there are many questions about what early elections in France called by the president will mean.
President Emmanuel Macron called early elections earlier this month following the victory of his right-wing National Rally party, led by rival Marine Le Pen, in European elections.
But Susanna Streeter, head of finance and markets at Hargreaves Lansdown, suggested Le Pen’s manifesto contained “unfunded spending”.
“They’re not as focused on capturing the market,” Streeter said.
In contrast, she says the Labour Party, which is currently leading in the opinion polls ahead of the UK general election, is trying to reassure investors and the City that it is a “safe party”.
