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London Reclaims Crown As Europe’s Biggest Stock Market

London, England is once again home to the largest stock exchange in Europe.

London has reclaimed the title from Paris, France less than two years after losing it. Ongoing political upheaval has led to a sharp drop in stock prices listed on the Paris exchange.

French President Emmanuel Macron’s snap election call has wiped $258 billion U.S. from the stocks of publicly traded French companies over the past week.

Stocks in France are now collectively worth $3.13 trillion U.S., less than the $3.18 trillion U.S. of stocks listed in rival London, according to data from Bloomberg Markets.

France’s CAC 40 stock index has lost all its gains in 2024, a sharp reversal from only a month ago when it was sitting at a record high.

At the same time, improving economic growth and a rise in merger activity has made British stocks more attractive to investors.

London’s benchmark FTSE 100 Index is currently at an all-time high, fueled by export-reliant stocks such as Shell (SHEL) and Unilever (UL).

The FTSE 100 has outperformed the Euro Stoxx 50 index over the last three months, with jet-engine maker Rolls-Royce (RYCEY) among the biggest winners.

The rise in British equities comes despite the country preparing for a general election with the left-leaning Labour Party leading in the polls.

On a global scale, England is now home to the sixth-biggest stock market.

However, some analysts are urging caution when it comes to British stocks, noting that the July 4 election is likely to mark the biggest political shake-up in the U.K. since Brexit.

Some analysts and economists also warn that a new government in England will have limited fiscal room and that inflation remains an issue in the country.