– London On Verge Of Losing Europe Market Supremacy:
By Michael Msika, Bloomberg Markets Live reporter and Strategist
For as long as most people can remember, London has been Europe’s biggest equity market. Given the crisis of confidence in British assets, that may soon change.
This year’s decline in UK stocks has pushed the market’s total capitalization to within touching distance of its nearest challenger, Paris. At the equivalent of $2.46 trillion, the gap between them is only $133 billion, close to the lowest on record.
The differential between the UK and French markets has been gradually eroding since Britons voted to leave the European Union in 2016. But the unprecedented market turmoil unleashed in the past week by Prime Minister Liz Truss has dealt a crucial blow, damaging economic confidence and sending the pound to a record low.
“London’s crown as the top European trading center was already losing its shine even before this latest confidence crisis and the plunge in sterling, with the impact of post-Brexit trade issues still weighing on sentiment,” says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.“With concerns deepening about the Truss administration’s handling of the economy, optimism appears to be seeping away.”
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