The UK’s main stock market retook its crown as Europe’s most valuable for the first time in nearly two years, data shows.
The total value of companies listed on the London Stock Exchange (LSE) hit $3.18tn on Monday, overtaking the $3.13tn total value of companies listed in Paris, according to Bloomberg data.
Both valuations have shifted since and remain close, but analysts describe it as a milestone.
They say the French market has slumped because of the uncertainty around its election, while the UK market is recovering after several years of underperformance.
The LSE had been Europe’s largest stock market for many years before November 2022 when it was overtaken.
Analysts at the time blamed LSE’s performance on the fallout from former Prime Minister Liz Truss’ mini-Budget, a weak pound, recession fears and Brexit.
The LSE was worth about $1.4tn more than its Parisian rival in 2016.
Analysts say that market investors generally dislike uncertainty – and there are many questions about what the French snap election called by the president will mean.
President Emmanuel Macron called the snap election earlier this month, following a victory for his rival Marine Le Pen’s right-wing National Rally in European elections.
Hargreaves Lansdown’s money and markets head Susannah Streeter suggested though that Le Pen’s manifesto contains “unfunded spending”.
“They are not so focused about winning over the market,” said Ms Streeter.
By contrast, she says the Labour party, which is currently leading in the polls in the run-up to the UK general election, has been trying to reassure investors and the City that it is a “safe pair of hands”.
