According to a Bloomberg survey, London has surpassed Paris as the largest stock market in Europe.
UK economist Julian Jessop has advised Remainers to pay attention because they “made a big deal when the opposite happened.”
Bloomberg analysts discovered that the overall market capitalization of major listings in London – excluding Exchange Traded Funds (ETFs) and American Depository Receipts (ADRs) – is now £2382.47 billion, slightly higher than the £2381.73 billion in Paris.
London fell off the top spot in November, extending an equity decline that began with Britain’s decision to leave the European Union in 2016.
However, the market has outperformed recently due to rising oil prices.
Writing on X, formerly Twitter, Mr Jessop, Economics Fellow at the free market think tank, the Institute of Economic Affairs, said: “FWIW, London has regained its ‘crown’ from Paris as Europe’s largest stockmarket…
“This is pretty meaningless (mainly about the types of companies quoted in the two centres), but that didn’t stop Remainers making a big deal when the reverse happened!”
Referring to accountancy firm Ernst and Young, Mr Jessop added: “Seriously, it makes far more sense to look at the performance of the UK in surveys of competitiveness (e.g. the Global Financial Centres Index), or attractiveness for investment (eg the EY surveys).
Janet Mui, head of market analysis at RBC Brewin Dolphin, explained: “The UK has held up better due to its sector mix
“The energy sector is a low-duration play which can hedge against more interest rate or inflation-sensitive secular growth exposure.”
In contrast, Paris is under pressure from China’s economic slowdown.