The London Stock Exchange’s performance was lifted by increasing oil prices, according to a Bloomberg index.
ADVERTISEMENTAfter losing its number-one spot among Europe’s biggest stock markets last year, London has just retaken first place, according to calculations by Bloomberg.
It compared the combined market capitalisation – calculated based on company share prices – of the businesses trading in each market.
The London market is heavily weighted to commodity stocks, including oil giants such as Shell and BP.
Due to rising oil prices, these companies gained a considerable amount in their respective market capitalisation, swelling the total sum for the London Stock Exchange to $2,888.4 billion (€2,739.53 billion), according to Bloomberg.
Paris, on the other hand, has lost nearly $270 billion in market value from its peak in April 2023, reducing the final sum to $2,887.5 billion.
The French stock exchanges have major luxury companies listed on them, which have fallen under pressure from China’s economic slowdown.
LVMH, L’Oreal SA, Hermes International and Kering SA make up almost 20% of the French benchmark CAC 40 index – and their share prices are all lower from peaks hit earlier this year.
The downward trend could last, according to analysts cited by Bloomberg, due to a likely slow in demand for luxury handbags and jewellery in China, as well as at home in Europe.
However, in light of major IPOs relocating to New York and the murky outlook of the UK economy, it’s yet to be seen whether London can keep the top spot.
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