London Stock Exchange no longer Europe´s most valuable stock market
France gained the top spot, as Europe´s most valuable stock market after a weaker pound and fears of recession in the UK had a major impact on the British stock market. According to the report from the BBC, the combined value of British shares is now estimated at around $2.821 trillion, while France’s are worth around $2.823 trillion. The report published on Monday, November 14, also states that another factor for the boost in the French stock market has been due to the increase in sale of its luxury good, which have seen an increase in demand from China.
This shift is a huge change for the London Stock Market the value of which in 2016 was worth $1.4 trillion more than the French. But the report states that although France Stock Market has been catching up, the UK´s medium sized companies have been performing badly this year. With fears of a recession and rising prices, consumers have cut back on their spending. Higher costs have also resulted in business struggling to meet their ends.
The report also states that the London FTSE 250 share index, which is made up of small size companies focused on the UK, has fallen by almost 17% in the last year
British firms were also hit hard after former Prime Minister Lizz Truss introduced a mini budget which resulted in the depreciation of the British Pound. The budget made it more expensive for businesses to import goods and raw materials.
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