France can easily regain its position and be back on top. But first, they need to get some patriots into office and stop the globalist agenda from destroying the nation.
Britain has recently surpassed France to become Europe’s largest stock exchange. This significant shift occurred after French President Emmanuel Macron’s unexpected decision to dissolve Parliament, which triggered a steep decline in French stock values. Following Macron’s announcement, France’s stock market valuation fell to $3.13 trillion, slightly below Britain’s $3.18 trillion. This data, sourced from Bloomberg, underscores a dramatic change in fortunes, considering France had overtaken Britain just 18 months prior amidst the UK’s struggles with energy crises, high inflation, and political instability during Liz Truss’s brief term as Prime Minister.
🇫🇷The snap election announcement by President Macron resulted in a $258 billion market value loss for French companies, dethroning France as Europe’s largest stock market. France’s total market cap is now $3.13 trillion, just under the 🇬🇧UK’s $3.18 trillion. #MM pic.twitter.com/aWxKr80kH5
— MacroMicro (@MacroMicroMe) June 17, 2024
The downturn in French stocks was notably severe after Macron’s announcement, with the Cac 40, a key index in Paris, experiencing its worst week since 2022 and erasing all gains for the year after previously reaching record highs. Analysts from Deutsche Bank highlighted the scale of the market reaction, comparing it to historical market disruptions post-9/11 and during the early COVID-19 pandemic. Major French banks like BNP Paribas and Credit Agricole saw over 10% drops in their stock prices, exacerbating the market’s volatility due to their substantial holdings in French bonds, which also declined sharply amidst political uncertainties.
London regains stock market crown as turmoil hits Paris
The London Stock Exchange has reclaimed its position as Europe's largest stock market by valuation, surpassing Paris amidst political turmoil in France. pic.twitter.com/pg9hz53dmq
— Chris Wealth Management Pvt Ltd (@chriswealthman1) June 18, 2024
In contrast, the UK’s FTSE 100 index achieved new highs this year, driven by a surge in investor interest towards undervalued London-listed companies and bolstered by significant new listings such as Raspberry Pi. This resurgence underscores a growing investor confidence in the British market relative to the unstable French market.
The situation in France saw some stabilization after right-wing leader Marine Le Pen indicated her willingness to collaborate with Macron if her party succeeded in upcoming elections. This political development slightly eased market tensions, leading to a modest recovery in the Cac 40. Despite these fluctuations, French government borrowing costs remained high, aligning with those of Portugal for the first time in two decades, and keeping the yields on 10-year debts at elevated levels compared to Germany.
🔴Paris NO longer Europe’s biggest stock market
France's recent political turmoil has resulted in the country losing its position as Europe’s largest equity market, just under two years after taking that title from the UK.
President Emmanuel Macron's unexpected announcement of… pic.twitter.com/j9jUX9MoGp— Resonant News🌍 (@Resonant_News) June 18, 2024
This period of market volatility highlights the significant impact of political events on financial markets, with analysts like Alberto Tocchio from Kairos Partners cautioning about the potential for continued instability in the coming weeks.
Major Points
- Britain has reclaimed its position as Europe’s largest stock exchange from France following President Macron’s unexpected dissolution of the French Parliament.
- The decline in French market value was significant, with stocks dropping to $3.13 trillion, just below Britain’s $3.18 trillion.
- French stocks, especially in major banks like BNP Paribas and Credit Agricole, saw sharp declines, exacerbated by political uncertainty and fears of a right-wing power shift.
- The FTSE 100 in Britain reached record highs, buoyed by investor confidence and new listings, such as Raspberry Pi.
- Political statements from right-wing leader Marine Le Pen provided some stabilization to the French market, although financial analysts warn of continued instability.
Susan Guglielmo – Reprinted with permission of Whatfinger News
