Paris vs LondonRivalry between London and Paris traders undoubtedly increased this week amidst news that the Paris stock exchange overtook London in value for the first time since record started in 2003. According to Bloomberg, the Paris stock exchange is now worth roughly EUR 2.823 trillion, while the London stock exchange is worth EUR 2.821 trillion.UK Midweights SufferingThe switch in positions has been mainly attributed to the sharp underperformance of UK mid-weighted firms which have been hampered this year by a weaker GBP, higher energy costs and ongoing supply issues (Brexit/covid). Additionally, the cost-of-living crisis has hit UK consumers hard, weighing on demand for these companies' products and services.French Luxury Brands BoomingWhile the UK stock market has been in rough waters, the French stock market has actually seen a boost this year, linked largely to increased sales from luxury fashion brands. With the return of Chinese demand this year, shares in companies such as Lous Vuitton and Chanel have soared, lifting the overall stock market price.Brexit WoesIn truth, the London stock market has been on the decline since the Brexit referendum in 2016. The legal activation of Brexit has obviously exacerbated this with many investment banks moving back to Paris and Berlin or moving large numbers of traders away from the city. With London now losing the top spot in Europe, political pressure on the government will no doubt increase.Technical ViewsCAC 40The rally in the CAC 40 this year has seen the market advancing more than 18% off the YTD lows. Recently breaking through the bearish trend line since YTD highs, and with both MACD and RSI bullish, the focus is on a continuation higher near-term with 6777.45 the next upside level to note.
Welcome! Log into your account
Recover your password
A password will be e-mailed to you.