The City was overtaken by Paris as economic growth concerns hit UK assets, while China’s relaxation of Covid rules has boosted French luxury shares.
Bloomberg has the details:
The combined market capitalization of primary listings in Paris overtook that of the London in US dollar terms, according to an index compiled by Bloomberg.
Domestically-focused UK shares have slumped this year, while French luxury goods-makers like LVMH and Gucci owner Kering have recently been boosted by optimism over a potential easing of China’s Covid Zero policy.
Currency movements have also worked in Paris’s favor. Former UK Prime Minister Liz Truss’s mini-budget of unfunded tax cuts in September and subsequent storm in UK financial markets sank sterling to the lowest level since 1985 against the greenback.
UK midcaps have been crushed this year on predictions that Britons would be squeezed harder by rising energy costs than elsewhere, while British homeowners are facing a surge in interest payments given the widespread issuance of flexible-rate mortgage loans in the country.
Within about three weeks of Truss becoming prime minister, UK’s stock and bond markets had lost roughly $500bn in combined value, with investor confidence shattered by the tax-cutting budget.
source https://mindclockwork.com/london-loses-crown-of-biggest-european-stock-market-to-paris/
No comments:
Post a Comment