London loses position as most valuable European stock market

Britain's banal marketplace has mislaid its presumption arsenic Europe's most-valued, arsenic the economical downturn weighs connected UK companies, information shows.

France has taken the apical spot arsenic the combined worth of its companies' shares person been boosted by currency movements and request for French luxury goods.

It is the archetypal clip Paris has overtaken London since records began successful 2003, according to information from Bloomberg.

The UK is expected to autumn into recession this twelvemonth arsenic ostentation rises.

The combined worth of British shares is present astir $2.821 trillion (£2.3 trillion), portion France's are worthy astir $2.823 trillion, Bloomberg calculates.

London's FTSE 250 stock scale - which lists mean sized companies - has slumped by much than 17% implicit the past twelvemonth arsenic consumers and businesses conflict with rising ostentation and higher involvement rates.

However, the FTSE 100 index, which comprises the biggest companies, has mostly remained flat, though the scale is skewed towards firms based overseas and commodities producers which person been boosted by soaring lipid prices.

According to Bloomberg, France's luxury goods makers helped to boost the wide worth of the country's CAC 40 scale of starring companies.

Shares successful LVMH, which owns manner location Louis Vuitton, person surged successful the past six months arsenic China eased lockdowns and its shoppers returned to pre-pandemic habits.

Chinese shoppers accounted for astir 35% of planetary request for luxury goods earlier the pandemic, according to Bloomberg data.

Financial markets were rocked by erstwhile chancellor Kwasi Kwarteng's mini-budget successful September. He outlined taxation cuts that had been the premise of erstwhile Prime Minister Liz Truss's enactment run but did not accidental however they would beryllium paid for - thing which sent the lb to its lowest level against the dollar, and which the politician of the Bank of England aboriginal said had damaged the UK's reputation.

The UK's representation arsenic a affluent federation is further being squeezed by the rising outgo of living. Like different countries vigor prices successful the UK person soared this year, portion galore British homeowners are besides facing a emergence successful owe payments arsenic the Bank of England raised involvement rates.

In addition, the archetypal twelvemonth of the pandemic damaged the UK much than astir economies. Since Brexit, it has been much hard for tiny businesses to commercialized with Europe, with British firms having much constricted entree to pools of European workers, starring to a little resilient economy.

Brexit trading rules person besides slowed the measurement of shares traded successful London, which led to Amsterdam ousting London arsenic the largest fiscal trading centre successful Europe successful February 2021.