London stock exchange loses position to Paris, here's why

The looming fears of a recession in the UK deepen as the London Stock Exchange loses Europe’s top position to Paris.

Reportedly, the market cap of the London Stock Exchange has fallen below that of the Paris Stock Exchange.

As of Wednesday, the London Stock Exchange had a market cap of $2.821 trillion, while the Paris Stock Exchange had a market cap of $2.83 trillion. As per media reports, market experts suggest that the gap that looks narrow at the moment is likely to widen in the coming days. Thus, the indication of a looming economic crisis in the UK has strengthened.


Investors continued to sell their stocks of UK companies as the fears of recession have grown significantly in the past few weeks. The political instability, with the UK having sworn in its third Prime Minister in a matter of months, has further derailed economic estimates.

According to leading economists, the UK is headed for a recession following a decline in real GDP for two consecutive quarters.

Experts believe that the economic turmoil in the UK began after Brexit, which was further amplified by the outbreak of COVID19. Further, the Russian invasion of Ukraine has caused a significant rise in living costs in the UK, and the controversial mini-budget presented by Kwasi Kwarteng worsened the country’s economic standing.

FAQs

• What is the market cap of London Stock Exchange?
The market cap of London Stock Exchange is $2.821 trillion.

• What is the market cap of Paris Stock Exchange?
The market cap of Paris Stock Exchange is $2.83 trillion.