London loses its status as the biggest European stock market to Paris

November 14, 2022

In our Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.

London loses its status as the biggest European stock market to Paris

Britain's stock market has lost its position as Europe's most-valued stock market to Paris, as economic growth concerns weigh on UK assets.

France has taken the top spot as the combined value of its companies' shares has been boosted by currency movements and demand for French luxury goods.

It is the first time Paris has overtaken London since records began in 2003.

The gap between the UK and French stock markets has been narrowing since Brits voted to leave the European Union in 2016.

The combined value of British shares is now around $2.821 trillion, while France's are worth around $2.823 trillion.

London's FTSE 250 share index - which lists medium-sized companies - has slumped by almost 17% in the last 12 months.

By contrast, the UK's FTSE 100 index, which is made up of bigger companies is down just 0.2% this year, versus the 17% plunge for the FTSE 250.

Currency movements have also worked in Paris’ favour, as the pound has tumbled 13 per cent against the US dollar this year, while the euro has lost only 9 per cent. 

One company which boosted sales was Louis Vuitton, as it had a surge of a 22% increase in the last six months as China eased lockdowns and its shoppers returned to pre-pandemic habits.

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Americans grew more worried about inflation in October, with fears coming from an expected rise in gasoline prices.

Inflation expectations for the year ahead rose to 5.9%, up half a percentage point from September to the highest level since July.

Three-year expectations also accelerated to 3.1%, while the five-year outlook rose to 2.4%, respective increases from 2.9% and 2.2%.

Respondents think gas prices will increase by 4.8% over the next year, up from 0.5% in September for the biggest one-month increase in survey data that goes back to June 2013

Metaverse could pump $1.4 trillion a year into Asia’s GDP

The metaverse’s contribution to gross domestic product in Asia could be between $800 billion and $1.4 trillion per year by 2035. That would make up roughly 1.3% to 2.4% of the overall GDP.

The metaverse can be loosely defined as a virtual world where people live, work and play with cryptocurrency. 60% of the world’s youths live in Asia. On top of that, there are 1.3 billion mobile gamers in Asia, making up the world’s largest player base.

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