The Paris Stock Exchange overtakes London to become the largest in Europe thanks to luxury brands
London is no longer home to Europe’s largest stock exchange, with Paris taking the crown on Monday, according to Bloomberg. The outlet credits the strong performance of luxury brands like Louis Vuitton and Gucci and hopes Chinese shoppers will be keen to splash the cash as pandemic restrictions are eased.
French shares are now worth $2.823 billion, compared to $2.821 billion listed on the UK stock exchange, Bloomberg reported, citing their research data. Britain had a $1.5 trillion advantage over France in 2016 when it voted to leave the European Union in the “Brexit” referendum.
It is Brexit rather than the fiscal policy of Prime Minister Liz Truss’ short-lived tenure at 10 Downing Street that is to blame, former Bank of England official Michael Saunders told Bloomberg TV.
“The UK economy as a whole has been lastingly damaged by Brexit,” he said. “The need to raise taxes and cut spending wouldn’t exist if Brexit hadn’t reduced the economy’s potential output so much.”
While blue-chip UK stocks have fallen just 0.4% this year, the FTSE 250 is down 17%, reflecting a “hammering” taken by mid-cap stocks of consumer-focused retailers and brands.
Meanwhile, French luxury brands like LVMH SE and Kering SA – owners of Gucci – are resisting “good” against concerns about the global recession. Owners of Louis Vuitton, LVMH, valued at $360 billion, said “sales record” in the United States and expect a good fourth quarter in the Chinese markets.
The pound sterling has also fallen 13% against the US dollar this year, while the euro has slipped only 9.2%, which has favored the French in the exchange comparison, as the volume of the two is measured in US currency.
You can share this story on social media: