Paris Overtakes London As Europe's Largest Stock Market

Britain has lost its position as Europe's largest stock market, as Paris overtook London for the first time since records began in 2003. The Independent reports: According to Bloomberg, the combined market value of primary listings on Monday on the Paris bourse ($2.823 trillion ) surpassed that of the London Stock Exchange ($2.821 trillion) -- finally closing a gap of around $1.5 trillion which has been narrowing since the Brexit referendum. The milestone shift on Monday came as French stocks were buoyed by optimism over the demand for French luxury goods in response to China's slight easing of Covid-19 restrictions, while the sharper fall in the pound's value against the dollar compared with that of the euro this year has also played a role, Bloomberg noted. While the UK's FTSE 100 index has remain relatively stable this year, thanks in part to export revenues boosted by a lower pound, the FTSE 250 index -- comprising smaller, medium-sized businesses -- has plummeted in value by 17 per cent. This fall has been fueled by concerns over rocketing energy bills and interest rates, the latter of which surged in the wake of Liz Truss's disastrous mini-Budget which spooked investors with her rapidly-announced raft of unfunded tax cuts. By the fourth week of Ms Truss's premiership, British stock and bond markets had lost roughly $500 billion in combined value, Bloomberg reported. Speaking as Office for National Statistics figures showed that Britain's was the only G7 economy to shrink in the three months to September, the chancellor said on Friday he was "under no illusion that there is a tough road ahead" requiring "extremely difficult decisions to restore confidence and economic stability." "But to achieve long-term, sustainable growth, we need to grip inflation, balance the books and get debt falling," Mr Hunt insisted, adding: "There is no other way." However, Michael Saunders -- an economist who, until August, spent six years as one of the nine members on the Bank of England committee responsible for setting interest rates -- suggested on Monday that, were it not for Brexit, "we probably wouldn't be talking about an austerity budget this week."

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